In This Article:
Delving into Swire Properties Ltd's Upcoming Dividend and its Historical Performance
Swire Properties Ltd (SWPFF) recently announced a dividend of $0.72 per share, payable on 2024-05-02, with the ex-dividend date set for 2024-04-02. 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 Properties Ltd's dividend performance and assess its sustainability.
What Does Swire Properties Ltd Do?
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Swire Properties is a Hong Kong-based property investor, and Hong Kong's largest office landlord. Its Hong Kong portfolio provides more than 13 million square feet of gross floor area, with its portfolio of Grade A office contributing over 9 million square feet. The firm also holds investment properties and development projects in China, the United States and Southeast Asia. Rental income accounts for over 60% of its total revenue, with property development and hotel operations contributing the balance. The company was listed in 2012. Parent company Swire Pacific holds an 82% stake.
A Glimpse at Swire Properties Ltd's Dividend History
Swire Properties Ltd has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Swire Properties Ltd's Dividend Yield and Growth
As of today, Swire Properties Ltd currently has a 12-month trailing dividend yield of 6.22% and a 12-month forward dividend yield of 6.48%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Swire Properties Ltd's annual dividend growth rate was 4.30%. Extended to a five-year horizon, this rate increased to 4.70% per year. And over the past decade, Swire Properties Ltd's annual dividends per share growth rate stands at 5.70%.
Based on Swire Properties Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Swire Properties Ltd stock as of today is approximately 7.83%.
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 Properties Ltd's dividend payout ratio is 2.26, which may suggest that the company's dividend may not be sustainable.