Yahoo Finance Chow Tai Fook Jewellery Group Ltd's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance
Chow Tai Fook Jewellery Group Ltd (CJEWF) recently announced a dividend of $0.25 per share, payable on 2023-12-22, with the ex-dividend date set for 2023-12-08. 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 Chow Tai Fook Jewellery Group Ltd's dividend performance and assess its sustainability.
What Does Chow Tai Fook Jewellery Group Ltd Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Chow Tai Fook Jewellery Group Ltd is engaged in the jewelry and watch business located in Mainland China. The company's geographical operating segment includes Mainland China and Hong Kong, Macau, and other markets. It generates maximum revenue from Mainland China. Its product categories include rings, bands, necklaces, pendants, earrings, chains, bracelets, and others. The company derives revenue from Gem-set, Gold products, Platinum/Karat gold products, and Watches.
A Glimpse at Chow Tai Fook Jewellery Group Ltd's Dividend History
Chow Tai Fook Jewellery Group Ltd has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Chow Tai Fook Jewellery Group Ltd's Dividend Yield and Growth
As of today, Chow Tai Fook Jewellery Group Ltd currently has a 12-month trailing dividend yield of 4.67% and a 12-month forward dividend yield of 4.67%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Chow Tai Fook Jewellery Group Ltd's annual dividend growth rate was 16.00%. Extended to a five-year horizon, this rate increased to 16.20% per year. And over the past decade, Chow Tai Fook Jewellery Group Ltd's annual dividends per share growth rate stands at 7.60%.
Based on Chow Tai Fook Jewellery Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Chow Tai Fook Jewellery Group Ltd stock as of today is approximately 9.89%.
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 2023-09-30, Chow Tai Fook Jewellery Group Ltd's dividend payout ratio is 0.76, which may suggest that the company's dividend may not be sustainable.
Chow Tai Fook Jewellery Group Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Chow Tai Fook Jewellery Group Ltd's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Chow Tai Fook Jewellery Group Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Chow Tai Fook Jewellery Group Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Chow Tai Fook Jewellery Group Ltd's revenue has increased by approximately 18.60% per year on average, a rate that outperforms approximately 80.6% 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, Chow Tai Fook Jewellery Group Ltd's earnings increased by approximately 23.00% per year on average, a rate that outperforms approximately 66.63% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 9.80%, which outperforms approximately 51.75% of global competitors, further underscores its growth potential.
Concluding Insights on Chow Tai Fook Jewellery Group Ltd's Dividend Viability
Chow Tai Fook Jewellery Group Ltd's dividend payments, growth rate, and payout ratio reflect a company with a strong commitment to shareholder returns. Coupled with its profitability and growth metrics, Chow Tai Fook Jewellery Group Ltd presents a compelling case for investors seeking stable dividend income. However, the sustainability of dividends will depend on the company's continued profitability and growth, which should be monitored by investors. With these factors in mind, Chow Tai Fook Jewellery Group Ltd appears poised to maintain its status as a desirable dividend-paying stock in the eyes of value investors.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
