In This Article:
Unveiling the Dividend Prospects of Swire Pacific Ltd
Swire Pacific Ltd (SWRAY) recently announced a dividend of $0.26 per share, payable on 2024-05-13, with the ex-dividend date set for 2024-04-10. 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 Swire Pacific Ltd's dividend performance and assess its sustainability.
What Does Swire Pacific Ltd Do?
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Swire Pacific is a Hong Kong-based conglomerate with interests in property, aviation, beverage, trading, and industrials. The property division, an 82% stake in Swire Properties, contributes more than half of the group's operating profit. The beverage division is one of two Coca-Cola bottlers in mainland China and also a bottler in Hong Kong, Taiwan, Thailand, Laos, Vietnam, and Cambodia. The aviation division consists of Haeco, an aircraft engineering company, and a 45% stake in Cathay Pacific. As of end December 2023, John Swire & Sons, the parent company, holds a 60% stake in Swire Pacific but has 68% of the voting rights through a dual-class share structure.
A Glimpse at Swire Pacific Ltd's Dividend History
Swire Pacific Ltd has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Swire Pacific Ltd's Dividend Yield and Growth
As of today, Swire Pacific Ltd currently has a 12-month trailing dividend yield of 4.69% and a 12-month forward dividend yield of 4.93%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Swire Pacific Ltd's annual dividend growth rate was 9.10%. Extended to a five-year horizon, this rate decreased to 2.40% per year. And over the past decade, Swire Pacific Ltd's annual dividends per share growth rate stands at -3.90%.
Based on Swire Pacific Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Swire Pacific Ltd stock as of today is approximately 5.28%.
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, Swire Pacific Ltd's dividend payout ratio is 0.18.