In This Article:
Exploring the Dividend Sustainability and Growth Prospects of Sinopharm Group Co Ltd (SHTDF)
Sinopharm Group Co Ltd (SHTDF) recently announced a dividend of $0.96 per share, payable on 2024-08-13, 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 Sinopharm Group Co Ltd's dividend performance and assess its sustainability.
What Does Sinopharm Group Co Ltd Do?
-
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
-
How to calculate the intrinsic value of a stock?
Founded in 2003, Sinopharm is the largest wholesaler and retailer of drugs and medical devices in China and listed on the Hong Kong Stock Exchange in 2009. It is a core subsidiary of China National Pharmaceutical Group. Sinopharm's largest operating segment is pharmaceutical distribution, making up over 70% of its total revenue by the end of 2023. In 2018, Sinopharm acquired the largest Chinese medical device distributor, China National Scientific Instruments and Materials. Now, medical device distribution accounts for over 20% of Sinopharm's total revenue. Sinopharm's downstream customers range from hospitals and other health services institutions to end-customers.
A Glimpse at Sinopharm Group Co Ltd's Dividend History
Sinopharm Group Co Ltd has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a yearly basis. Sinopharm Group Co Ltd has increased its dividend each year since 2011. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 13 years.
Breaking Down Sinopharm Group Co Ltd's Dividend Yield and Growth
As of today, Sinopharm Group Co Ltd currently has a 12-month trailing dividend yield of 4.27% and a 12-month forward dividend yield of 4.53%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Sinopharm Group Co Ltd's annual dividend growth rate was 8.90%. Extended to a five-year horizon, this rate decreased to 7.50% per year. And over the past decade, Sinopharm Group Co Ltd's annual dividends per share growth rate stands at an impressive 11.90%.
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 2024-03-31, Sinopharm Group Co Ltd's dividend payout ratio is 0.28.