Understanding the Dividend Outlook for Jardine Matheson Holdings Ltd
Jardine Matheson Holdings Ltd (JMHLY) recently announced a dividend of $1.65 per share, payable on 2024-05-22, with the ex-dividend date set for 2024-03-21. 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 Jardine Matheson Holdings Ltd's dividend performance and assess its sustainability.
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Jardine Matheson Holdings Ltd is a conglomerate of businesses operating primarily in Greater China and Southeast Asia. The affiliates offer products and services in motor vehicles and related operations, property investment and development, food retailing, home furnishing, engineering and construction, transport services, insurance broking, restaurants, luxury hotels, financial services, heavy equipment, mining, and agribusiness. In terms of net income, the largest businesses within the group are Hong Kong Land and Dairy Farm, which are property investment firms and food retailers, respectively.
Jardine Matheson Holdings Ltd's Dividend Analysis
A Glimpse at Jardine Matheson Holdings Ltd's Dividend History
Jardine Matheson Holdings Ltd has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Jardine Matheson Holdings Ltd's Dividend Yield and Growth
As of today, Jardine Matheson Holdings Ltd currently has a 12-month trailing dividend yield of 5.57% and a 12-month forward dividend yield of 5.70%. This suggests an expectation of increased dividend payments over the next 12 months.
Jardine Matheson Holdings Ltd's dividend yield of 5.57% is near a 10-year high and outperforms 86.14% of global competitors in the Conglomerates industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Jardine Matheson Holdings Ltd's annual dividend growth rate was 7.00%. Extended to a five-year horizon, this rate decreased to 5.30% per year. And over the past decade, Jardine Matheson Holdings Ltd's annual dividends per share growth rate stands at 4.20%.
Based on Jardine Matheson Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Jardine Matheson Holdings Ltd stock as of today is approximately 7.21%.
Jardine Matheson 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 2023-06-30, Jardine Matheson Holdings Ltd's dividend payout ratio is 0.38.
Jardine Matheson Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Jardine Matheson Holdings Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Jardine Matheson 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 Jardine Matheson Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Jardine Matheson Holdings Ltd's revenue has increased by approximately 6.20% per year on average, a rate that outperforms approximately 51.79% 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, Jardine Matheson Holdings Ltd's earnings increased by approximately 9.10% per year on average, a rate that outperforms approximately 40.59% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 4.10%, which outperforms approximately 36% of global competitors.
Final Thoughts on Jardine Matheson Holdings Ltd's Dividend Profile
Summarizing Jardine Matheson Holdings Ltd's dividend payments, growth rate, payout ratio, and growth metrics, investors can glean a comprehensive view of the company's financial health and dividend sustainability. With a strong history of consistent dividends, an attractive yield near a decade high, and a payout ratio that balances income distribution with growth potential, Jardine Matheson Holdings Ltd stands as a compelling option for income-focused portfolios. The company's solid profitability and positive growth indicators further support the likelihood of continued dividend payments, making it a noteworthy consideration for value investors seeking stable income streams.
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.
