Sino Land Co Ltd's Dividend Analysis
Unraveling the Dividend Performance and Sustainability of Sino Land Co Ltd
Sino Land Co Ltd (SNLAY) recently announced a dividend of $0.27 per share, payable on 2023-12-14, with the ex-dividend date set for 2023-10-26. 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 delve into Sino Land Co Ltd's dividend performance and assess its sustainability.
Understanding Sino Land Co Ltd's Business
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Sino Land Co Ltd is primarily a property developer engaged in residential development in Hong Kong. It also holds a portfolio of investment properties in the city, mostly commercial properties adjoining its past housing projects. Many of its residential projects were developed in joint ventures with government-related entities like MTR and Urban Renewal Authority. The majority of the company's earnings are derived from rental income and property development, mainly from Hong Kong. The remaining earnings come from the hotel and other segments. Sino Land Co Ltd is 55% owned by Tsim Sha Tsui Properties, an entity controlled by the estate of the late Mr. Ng Teng Fong, the company's founder.
Exploring Sino Land Co Ltd's Dividend History
Sino Land Co Ltd has maintained a consistent dividend payment record since 2006. Dividends are currently distributed on a bi-annually basis. The chart below provides a glimpse into the company's annual Dividends Per Share for tracking historical trends.
Understanding Sino Land Co Ltd's Dividend Yield and Growth
As of today, Sino Land Co Ltd boasts a 12-month trailing dividend yield of 6.41% and a 12-month forward dividend yield of 6.49%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Sino Land Co Ltd's annual dividend growth rate was 1.20%. Extended to a five-year horizon, this rate increased to 1.40% per year. Over the past decade, Sino Land Co Ltd's annual dividends per share growth rate stands at 1.70%. Based on Sino Land Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Sino Land Co Ltd stock as of today is approximately 6.87%.
Evaluating Sino Land Co Ltd's Dividend Sustainability
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, Sino Land Co Ltd's dividend payout ratio is 0.79. This may suggest that the company's dividend may not be sustainable.
Sino Land Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. As of 2023-06-30, GuruFocus ranks Sino Land Co Ltd's profitability 7 out of 10, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Looking at Sino Land Co Ltd's Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Sino Land Co Ltd's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors.
Revenue is the lifeblood of any company, and Sino Land Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Sino Land Co Ltd's revenue has increased by approximately 20.70% per year on average, a rate that outperforms approximately 79.4% 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, Sino Land Co Ltd's earnings increased by approximately 44.90% per year on average, a rate that outperforms approximately 86.87% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -12.50%, outperforms approximately 22.99% of global competitors.
Concluding Remarks
In conclusion, Sino Land Co Ltd has shown a consistent dividend payment record, with a promising yield and growth rate. However, its high payout ratio raises questions about the sustainability of its dividends. Despite this, the company's strong profitability and growth metrics indicate a robust financial performance that could support future dividend payments. Investors should closely monitor these factors to make informed decisions about their investment in Sino Land Co Ltd.
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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.
