Exploring the Dividend Performance and Sustainability of China State Construction International Holdings Ltd (CCOHF)
China State Construction International Holdings Ltd (CCOHF) recently announced a dividend of $0.29 per share, payable on 2024-07-09, with the ex-dividend date set for 2024-06-17. 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 China State Construction International Holdings Ltd's dividend performance and assess its sustainability.
What Does China State Construction International Holdings Ltd Do?
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China State Construction International Holdings Ltd is engaged in the construction business. The principal activity of the Company is the construction business, infrastructure project investments, toll road operation, project consultancy services and facade contracting business. The company's activities include construction, project consultancy services, thermoelectricity business, infrastructure project investments, toll road operation, and facade contracting business. The company reports in the following segments Mainland China, Hong Kong, Macau and CSC Development Group. It derives a majority of its revenue from Mainland China.
China State Construction International Holdings Ltd's Dividend Analysis
A Glimpse at China State Construction International Holdings Ltd's Dividend History
China State Construction International Holdings Ltd has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
China State Construction International Holdings Ltd's Dividend Analysis
Breaking Down China State Construction International Holdings Ltd's Dividend Yield and Growth
As of today, China State Construction International Holdings Ltd currently has a 12-month trailing dividend yield of 7.44% and a 12-month forward dividend yield of 8.24%, suggesting an expectation of increase in dividend payments over the next 12 months. Over the past three years, China State Construction International Holdings Ltd's annual dividend growth rate was 16.00%. Extended to a five-year horizon, this rate decreased to 10.50% per year. And over the past decade, China State Construction International Holdings Ltd's annual dividends per share growth rate stands at 8.10%.
Based on China State Construction International Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of China State Construction International Holdings Ltd stock as of today is approximately 12.26%.
China State Construction International Holdings 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, China State Construction International Holdings Ltd's dividend payout ratio is 66.00. And this may suggest that the company's dividend may not be sustainable.
China State Construction International Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks China State Construction International Holdings Ltd's profitability 9 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. China State Construction International Holdings Ltd's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and China State Construction International Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. China State Construction International Holdings Ltd's revenue has increased by approximately 22.20% per year on average, a rate that outperforms approximately 82.95% 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, China State Construction International Holdings Ltd's earnings increased by approximately -77.80% per year on average, a rate that outperforms approximately 2.79% of global competitors.
Next Steps
Given China State Construction International Holdings Ltd's consistent dividend payments, robust dividend growth rate, and strong financial metrics, the company remains an attractive proposition for value investors focused on dividend income. However, monitoring the payout ratio and maintaining an awareness of broader economic conditions will be crucial in assessing the future sustainability of these dividends. For those looking to expand their portfolio with high-dividend yield stocks, 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.
