Advertisement
New Zealand markets closed
  • NZX 50

    11,699.79
    -28.27 (-0.24%)
     
  • NZD/USD

    0.6136
    +0.0015 (+0.24%)
     
  • NZD/EUR

    0.5637
    +0.0008 (+0.15%)
     
  • ALL ORDS

    8,082.30
    -67.80 (-0.83%)
     
  • ASX 200

    7,814.40
    -66.90 (-0.85%)
     
  • OIL

    80.00
    +0.77 (+0.97%)
     
  • GOLD

    2,419.80
    +34.30 (+1.44%)
     
  • NASDAQ

    18,546.23
    -11.73 (-0.06%)
     
  • FTSE

    8,420.26
    -18.39 (-0.22%)
     
  • Dow Jones

    40,003.59
    +134.21 (+0.34%)
     
  • DAX

    18,704.42
    -34.39 (-0.18%)
     
  • Hang Seng

    19,553.61
    +177.08 (+0.91%)
     
  • NIKKEI 225

    38,787.38
    -132.88 (-0.34%)
     
  • NZD/JPY

    95.4860
    +0.4250 (+0.45%)
     

Swire Pacific Ltd's Dividend Analysis

Unveiling the Dividend Prospects of Swire Pacific Ltd

Swire Pacific Ltd (SWRAY) recently announced a dividend of $0.26 per share, payable on 2024-05-13, with the ex-dividend date set for 2024-04-10. 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 Swire Pacific Ltd's dividend performance and assess its sustainability.

What Does Swire Pacific Ltd Do?

ADVERTISEMENT

Swire Pacific is a Hong Kong-based conglomerate with interests in property, aviation, beverage, trading, and industrials. The property division, an 82% stake in Swire Properties, contributes more than half of the group's operating profit. The beverage division is one of two Coca-Cola bottlers in mainland China and also a bottler in Hong Kong, Taiwan, Thailand, Laos, Vietnam, and Cambodia. The aviation division consists of Haeco, an aircraft engineering company, and a 45% stake in Cathay Pacific. As of end December 2023, John Swire & Sons, the parent company, holds a 60% stake in Swire Pacific but has 68% of the voting rights through a dual-class share structure.

Swire Pacific Ltd's Dividend Analysis
Swire Pacific Ltd's Dividend Analysis

A Glimpse at Swire Pacific Ltd's Dividend History

Swire Pacific Ltd has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down Swire Pacific Ltd's Dividend Yield and Growth

As of today, Swire Pacific Ltd currently has a 12-month trailing dividend yield of 4.69% and a 12-month forward dividend yield of 4.93%. This suggests an expectation of increased dividend payments over the next 12 months.

Over the past three years, Swire Pacific Ltd's annual dividend growth rate was 9.10%. Extended to a five-year horizon, this rate decreased to 2.40% per year. And over the past decade, Swire Pacific Ltd's annual dividends per share growth rate stands at -3.90%.

Based on Swire Pacific Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Swire Pacific Ltd stock as of today is approximately 5.28%.

Swire Pacific Ltd's Dividend Analysis
Swire Pacific Ltd's Dividend Analysis

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 2023-12-31, Swire Pacific Ltd's dividend payout ratio is 0.18.

Swire Pacific Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Swire Pacific Ltd's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. Swire Pacific Ltd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.

Revenue is the lifeblood of any company, and Swire Pacific Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Swire Pacific Ltd's revenue has increased by approximately 7.90% per year on average, a rate that outperforms approximately 53.96% of global competitors.

Next Steps

In conclusion, Swire Pacific Ltd's upcoming dividend, along with its historical payments, presents an appealing case for income-focused investors. The company's moderate dividend growth rate, conservative payout ratio, fair profitability, and growth metrics all contribute to the potential sustainability of its dividends. However, investors should also consider the broader economic environment and sector-specific challenges that may impact the company's ability to maintain its dividend policy. For those seeking high-dividend yield stocks, GuruFocus Premium offers a comprehensive High Dividend Yield Screener to aid in the discovery of similar investment opportunities.

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.