Yahoo Finance Beijing Enterprises Holdings Ltd's Dividend Analysis
Insights into the Dividend Performance and Sustainability of Beijing Enterprises Holdings Ltd (BJINF)
Beijing Enterprises Holdings Ltd (BJINF) recently announced a dividend of $0.67 per share, payable on 2024-08-09, with the ex-dividend date set for 2024-06-11. 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 Beijing Enterprises Holdings Ltd's dividend performance and assess its sustainability.
What Does Beijing Enterprises Holdings Ltd Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Beijing Enterprises Holdings was founded in 1997 and it is the listed flagship of the Beijing municipal government. It has a diversified business portfolio with focus on public utilities, including gas distribution and transmission, sewage and water treatment, and waste-to-energy business. It also invests in an upstream Russia oil and gas company, and owns 80% of Yanjing Brewery, one of the leading domestic brewers. The business mix is approximately 62% in gas operation, with the rest in water, waste treatment, and beer businesses in 2023.
A Glimpse at Beijing Enterprises Holdings Ltd's Dividend History
Beijing Enterprises Holdings Ltd has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Beijing Enterprises Holdings Ltd's Dividend Yield and Growth
As of today, Beijing Enterprises Holdings Ltd currently has a 12-month trailing dividend yield of 7.29% and a 12-month forward dividend yield of 5.75%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Beijing Enterprises Holdings Ltd's annual dividend growth rate was 21.20%. Extended to a five-year horizon, this rate decreased to 12.30% per year. And over the past decade, Beijing Enterprises Holdings Ltd's annual dividends per share growth rate stands at 7.40%.
Based on Beijing Enterprises Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Beijing Enterprises Holdings Ltd stock as of today is approximately 13.02%.
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, Beijing Enterprises Holdings Ltd's dividend payout ratio is 0.43.
Beijing Enterprises Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Beijing Enterprises Holdings Ltd's profitability 7 out of 10 as of 2023-12-31, 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. Beijing Enterprises Holdings Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Beijing Enterprises Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Beijing Enterprises Holdings Ltd's revenue has increased by approximately 9.90% per year on average, a rate that outperforms approximately 54.49% 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, Beijing Enterprises Holdings Ltd's earnings increased by approximately 5.60% per year on average, a rate that outperforms approximately 35.98% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -0.90%, which outperforms approximately 24.12% of global competitors.
Conclusion
Considering Beijing Enterprises Holdings Ltd's consistent dividend payments, robust dividend growth rate, sustainable payout ratio, and solid profitability and growth metrics, the company presents a compelling case for dividend investors. For those seeking to explore further, 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.
