Kirin Holdings Co Ltd's Dividend Analysis
Delving into Kirin Holdings Co Ltd's Upcoming Dividend and Financial Health
Kirin Holdings Co Ltd (KNBWF) recently announced a dividend of $34.5 per share, payable on a date yet to be confirmed, with the ex-dividend date set for 2023-12-29. 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 look into Kirin Holdings Co Ltd's dividend performance and assess its sustainability.
What Does Kirin Holdings Co Ltd Do?
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Kirin Holdings Co Ltd, the second largest brewer by value in Japan, boasts a significant presence in the beer and beverage industry. With a strong focus on happoshu and new genre categories, Kirin Holdings Co Ltd also operates in various alcoholic and soft beverage segments. Despite previous international expansions, the company has refocused on its domestic market, emphasizing craft beer and wellness as key growth areas. Kirin Holdings Co Ltd maintains a substantial international footprint, with around 40% of its sales coming from overseas, including a notable stake in San Miguel.
A Glimpse at Kirin Holdings Co Ltd's Dividend History
Kirin Holdings Co Ltd has upheld a steadfast commitment to dividend payments since 2004, opting for bi-annual distributions. The company's dedication to growing dividends is evident, as it has increased its dividend annually since 2007, earning the status of a dividend achiever. To better understand this trajectory, let's examine the historical trends of Kirin Holdings Co Ltd's annual Dividends Per Share.
Breaking Down Kirin Holdings Co Ltd's Dividend Yield and Growth
Kirin Holdings Co Ltd's current 12-month trailing dividend yield stands at 3.52%, with a forward dividend yield of 3.62%, hinting at anticipated dividend growth over the next year. The company's dividend has experienced a 2.50% annual growth rate over the past three years, which extends to 8.20% over a five-year span and 9.10% over the last decade. These figures lead to a 5.22% 5-year yield on cost for Kirin Holdings Co Ltd stock as of today.
The Sustainability Question: Payout Ratio and Profitability
An essential factor in dividend sustainability is the dividend payout ratio. As of 2023-09-30, Kirin Holdings Co Ltd's payout ratio is 0.86, which may raise concerns about the longevity of its dividend payments. Furthermore, Kirin Holdings Co Ltd's profitability rank is a moderate 6 out of 10, indicating fair profitability with a history of net profit in 9 of the past 10 years.
Growth Metrics: The Future Outlook
The future of Kirin Holdings Co Ltd's dividends also hinges on its growth metrics. With a growth rank of 6 out of 10, the company's prospects appear moderate. Its revenue per share and 3-year revenue growth rate of approximately 3.00% annually lag behind roughly 62.44% of global competitors. The 3-year EPS growth rate of 11.80% per year similarly underperforms against about 50.57% of global peers. Additionally, a 5-year EBITDA growth rate of -13.80% places the company behind approximately 93.33% of global competitors.
Next Steps
When considering the totality of Kirin Holdings Co Ltd's dividend payments, growth rate, payout ratio, profitability, and growth metrics, investors are faced with a nuanced picture. While the company has a commendable history of dividend achievements and a forward-looking yield that suggests confidence, the payout ratio and mixed growth metrics imply a need for careful evaluation. Value investors should weigh these factors alongside their investment strategy to determine the suitability of Kirin Holdings Co Ltd for their portfolios. For those seeking high-dividend yield stocks, GuruFocus Premium offers the High Dividend Yield Screener as a valuable resource.
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.
