Unveiling Qifu Technology Inc's Dividend Performance: A Deep Dive into its Sustainability
An in-depth look at the dividend history, yield, and growth of Qifu Technology Inc (NASDAQ:QFIN)
Qifu Technology Inc (NASDAQ:QFIN) recently announced a dividend of $0.5 per share, payable on 2023-11-01, with the ex-dividend date set for 2023-09-21. As investors anticipate this forthcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, we delve into Qifu Technology Inc's dividend performance and assess its sustainability.
Introduction to Qifu Technology Inc
Warning! GuruFocus has detected 4 Warning Signs with IGGRF. 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?
Qifu Technology Inc is a leading Credit-Tech platform in China. It provides credit services that are more accessible and personalized to consumers and SMEs. Through its Credit-Tech services to financial institutions, Qifu Technology Inc deploys its technology solutions to help financial institutions identify the diverse needs of consumers and SMEs. It also aids in effectively accessing creditworthy prospective borrowers through multi-channels, enhancing credit assessment, managing credit risks, and improving collection strategies and efficiency.
Qifu Technology Inc's Dividend History
Qifu Technology Inc has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Qifu Technology Inc's Dividend Yield and Growth
As of today, Qifu Technology Inc currently has a 12-month trailing dividend yield of 3.25% and a 12-month forward dividend yield of 5.38%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Qifu Technology Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Qifu Technology Inc stock as of today is approximately 3.25%.
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, Qifu Technology Inc's dividend payout ratio is 0.15.
Qifu Technology Inc's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Qifu Technology Inc's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported net profit in 6 years out of the past 10 years.
Future Prospects: Growth Metrics
To ensure the sustainability of dividends, a company must have robust growth metrics. Qifu Technology Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Qifu Technology Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Qifu Technology Inc's revenue has increased by approximately 22.50% per year on average, a rate that outperforms approximately 79.35% 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, Qifu Technology Inc's earnings increased by approximately 14.80% per year on average, a rate that outperforms approximately 57.29% of global competitors.
Conclusion
Considering Qifu Technology Inc's consistent dividend payments, promising growth rate, manageable payout ratio, and fair profitability, the company appears to have a sustainable dividend. However, investors should continue to monitor these metrics closely to ensure the company's ability to maintain its dividend performance in the long run.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
