Guangdong Investment Ltd (GGDVF): A Deep Dive into Its Dividend Performance and Sustainability
A comprehensive analysis of Guangdong Investment Ltd's dividend history, yield, growth, and its future prospects
Guangdong Investment Ltd(GGDVF) recently announced a dividend of $0.19 per share, payable on 2023-10-26, with the ex-dividend date set for 2023-10-06. 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 Guangdong Investment Ltd's dividend performance and assess its sustainability.
Understanding Guangdong Investment Ltd's Business
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Guangdong Investment Ltd is engaged in investment holding, water resources, property investment and development, department store operation, hotel ownership, operation and management, investment in energy projects, road, and bridge operation. Its segments include water resources, property investment and development, department store operation, electric power generation, hotel operation and management, road and bridge segment, and others segment. The company derives most of the revenue from the water resources segment that engages in water distribution, sewage treatment, and construction of water supply and sewage treatment infrastructure for customers in Mainland China and Hong Kong.
Guangdong Investment Ltd's Dividend History
Guangdong Investment Ltd has maintained a consistent dividend payment record since 2008. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Assessing Guangdong Investment Ltd's Dividend Yield and Growth
As of today, Guangdong Investment Ltd currently has a 12-month trailing dividend yield of 11.61% and a 12-month forward dividend yield of 11.61%. This suggests an expectation of same dividend payments over the next 12 months.
Guangdong Investment Ltd's dividend yield of 11.61% is near a 10-year high and outperforms than 94.38 of global competitors in the Utilities - Regulated industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Guangdong Investment Ltd's annual dividend growth rate was 3.80%. Extended to a five-year horizon, this rate increased to 6.40% per year. And over the past decade, Guangdong Investment Ltd's annual dividends per share growth rate stands at an impressive 14.30%.
Based on Guangdong Investment Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Guangdong Investment Ltd stock as of today is approximately 15.83%.
Is Guangdong Investment Ltd's Dividend Sustainable?
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, Guangdong Investment Ltd's dividend payout ratio is 0.92. This may suggest that the company's dividend may not be sustainable.
Guangdong Investment Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Guangdong Investment Ltd's profitability 9 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.
Guangdong Investment Ltd's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Guangdong Investment Ltd's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Guangdong Investment Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Guangdong Investment Ltd's revenue has increased by approximately 11.60% per year on average, a rate that outperforms than approximately 66.32% 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, Guangdong Investment Ltd's earnings increased by approximately -1.90% per year on average, a rate that outperforms than approximately 34.05% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -3.50%, which outperforms than approximately 23.81% of global competitors.
Conclusion
While Guangdong Investment Ltd's dividend payments, growth rate, and profitability rank are impressive, the high payout ratio raises questions about the sustainability of the dividends. However, the company's strong growth metrics indicate a promising future, which could potentially support continued dividend payments. Investors should keep a close eye on these factors while making investment decisions.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
