Delving into CITIC Ltd's Dividend Performance: A Comprehensive Analysis
Assessing Dividend History, Yield, Growth, and Sustainability of CITIC Ltd (CTPCF)
CITIC Ltd (CTPCF) recently announced a dividend of $0.2 per share, payable on 2023-11-16, with the ex-dividend date set for 2023-09-22. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into CITIC Ltd's dividend performance and assess its sustainability.
About CITIC Ltd
Warning! GuruFocus has detected 5 Warning Signs with CTPCF. Click here to check it out.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
CITIC Ltd is a Hong Kong-based investment holding company. The company's operating segment includes Comprehensive financial services; Advanced intelligent manufacturing; Advanced materials; New consumption and New-type urbanisation. It generates maximum revenue from the Comprehensive financial services segment. Geographically it derives a majority of its revenue from Mainland China.
Tracing CITIC Ltd's Dividend History
CITIC Ltd has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Understanding CITIC Ltd's Dividend Yield and Growth
As of today, CITIC Ltd currently has a 12-month trailing dividend yield of 9.05% and a 12-month forward dividend yield of 9.00%. This suggests an expectation of decrease dividend payments over the next 12 months.
CITIC Ltd's dividend yield of 9.05% is near a 10-year high and outperforms than 93.49 of global competitors in the Conglomerates industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, CITIC Ltd's annual dividend growth rate was 14.20%. Extended to a five-year horizon, this rate decreased to 12.20% per year. And over the past decade, CITIC Ltd's annual dividends per share growth rate stands at 4.90%.
Based on CITIC Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of CITIC Ltd stock as of today is approximately 16.09%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, CITIC Ltd's dividend payout ratio is 0.29.
CITIC Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks CITIC Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Examining Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. CITIC Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and CITIC Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. CITIC Ltd's revenue has increased by approximately 10.20% per year on average, a rate that outperforms than approximately 65.24% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, CITIC Ltd's earnings increased by approximately 11.90% per year on average, a rate that outperforms than approximately 45.48% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 11.30%, which outperforms than approximately 55.51% of global competitors.
Conclusion
With its consistent dividend payments, high dividend yield, and robust growth metrics, CITIC Ltd presents an attractive proposition for income investors. Its relatively low payout ratio and high profitability rank suggest a sustainable dividend, while its strong growth metrics indicate promising future prospects. However, as with any investment, potential investors should conduct their due diligence and consider the overall financial health and market position of CITIC Ltd before making an investment decision.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
