Hang Lung Group Ltd (HNLGF): A Deep Dive into its Dividend Performance
Unveiling the Dividend History, Yield, and Sustainability of Hang Lung Group Ltd (HNLGF)
Hang Lung Group Ltd(HNLGF) recently announced a dividend of $0.21 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-12. 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 Hang Lung Group Ltd's dividend performance and assess its sustainability.
What Does Hang Lung Group Ltd Do?
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Hang Lung Group Ltd is an investment holding company engaged in the property leasing business. The Company operates its business through two segments. The Property Leasing segment engages in the property leasing operation. The Company's investment properties portfolio consists of retail, office, residential, serviced apartments, and car parks, located in mainland China and Hong Kong, and the Property Sales segment engages in the development and sale of trading properties in mainland China and Hong Kong. It derives a majority of its revenue from the property leasing segment.
A Glimpse at Hang Lung Group Ltd's Dividend History
Hang Lung Group 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.
Breaking Down Hang Lung Group Ltd's Dividend Yield and Growth
As of today, Hang Lung Group Ltd currently has a 12-month trailing dividend yield of 8.32% and a 12-month forward dividend yield of 8.33%. This suggests an expectation of increased dividend payments over the next 12 months.
Hang Lung Group Ltd's dividend yield of 8.32% is near a 10-year high and outperforms than 86.45 of global competitors in the Real Estate industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Hang Lung Group Ltd's annual dividend growth rate was 2.40%. Extended to a five-year horizon, this rate decreased to 1.50% per year. And over the past decade, Hang Lung Group Ltd's annual dividends per share growth rate stands at 2.20%.
Based on Hang Lung Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Hang Lung Group Ltd stock as of today is approximately 8.96%.
The Sustainability Question: 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, Hang Lung Group Ltd's dividend payout ratio is 0.39.
Hang Lung Group Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hang Lung Group Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Hang Lung Group 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 Hang Lung Group Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hang Lung Group Ltd's revenue has increased by approximately 5.10% per year on average, a rate that outperforms than approximately 56.17% 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, Hang Lung Group Ltd's earnings increased by approximately -26.40% per year on average, a rate that outperforms than approximately 19.76% of global competitors.
Next Steps
Considering Hang Lung Group Ltd's consistent dividend payments, impressive growth rate, sustainable payout ratio, good profitability, and robust growth metrics, it appears to be a promising choice for investors seeking steady income. However, it is essential to monitor the company's performance and industry trends continually. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
