Yahoo Finance Xinyi Solar Holdings Ltd's Dividend Analysis
Exploring the Sustainability and Growth of Dividends
Xinyi Solar Holdings Ltd (XISHY) recently announced a dividend of $0.38 per share, payable on 2024-08-22, with the ex-dividend date set for 2024-06-05. 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 Xinyi Solar Holdings Ltd's dividend performance and assess its sustainability.
What Does Xinyi Solar Holdings Ltd Do?
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Xinyi Solar Holdings Ltd is an investment holding company. Its activities consist of the production and sale of solar glass products, the development and operation of solar farms, and the provision of engineering, procurement, and construction (EPC) services. The company's segments include sales of solar glass; solar farm business which includes solar farm development and solar power generation; and EPC services. It derives revenue from two core business segments, namely the sale and manufacturing of solar glass and solar farm business. Its operations are held in the People's Republic of China and other countries.
A Glimpse at Xinyi Solar Holdings Ltd's Dividend History
Xinyi Solar Holdings Ltd has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Xinyi Solar Holdings Ltd's Dividend Yield and Growth
As of today, Xinyi Solar Holdings Ltd currently has a 12-month trailing dividend yield of 3.41% and a 12-month forward dividend yield of 4.38%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Xinyi Solar Holdings Ltd's annual dividend growth rate was 1.00%. Extended to a five-year horizon, this rate increased to 10.90% per year. Based on Xinyi Solar Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Xinyi Solar Holdings Ltd stock as of today is approximately 5.72%.
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, Xinyi Solar Holdings Ltd's dividend payout ratio is 0.37. Xinyi Solar Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Xinyi Solar Holdings Ltd's profitability 10 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of 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. Xinyi Solar Holdings Ltd's growth rank of 10 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Xinyi Solar Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Xinyi Solar Holdings Ltd's revenue has increased by approximately 26.00% per year on average, a rate that outperforms approximately 83.33% 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, Xinyi Solar Holdings Ltd's earnings increased by approximately -5.40% per year on average, a rate that outperforms approximately 33.94% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 12.80%, which outperforms approximately 51.64% of global competitors.
Conclusion
Xinyi Solar Holdings Ltd's robust dividend payments, supported by a prudent payout ratio and strong profitability, present a compelling case for investors looking for sustainable income. The company's consistent growth in revenue and earnings further solidifies its ability to maintain and potentially increase dividend distributions in the future. Investors seeking to diversify their portfolios with a reliable dividend-paying stock should consider Xinyi Solar Holdings Ltd. For more detailed analysis and to find similar investment opportunities, GuruFocus Premium users can utilize 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.
