In This Article:
Assessing the Dividend Performance and Sustainability of NDVLY
New World Development Co Ltd (NDVLY) recently announced a dividend of $0.02 per share, payable on 2023-12-27, with the ex-dividend date set for 2023-11-22. 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 New World Development Co Ltd's dividend performance and assess its sustainability.
What Does New World Development Co Ltd Do?
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New World Development, or NWD, is the listed property arm of Chow Tai Fook, owned by the Cheng family. Chow Tai Fook owns a 45% stake in NWD, which mainly engages in residential property development and investment properties of retail malls and offices in Hong Kong and mainland China. NWD also develops high-end hotels across Hong Kong, mainland China and in Southeast Asia. Additionally, NWD holds a 75% interest in New World Department Store China, which operates 24 department stores in mainland China.
A Glimpse at New World Development Co Ltd's Dividend History
New World Development Co Ltd has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down New World Development Co Ltd's Dividend Yield and Growth
As of today, New World Development Co Ltd currently has a 12-month trailing dividend yield of 12.68% and a 12-month forward dividend yield of 4.90%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, New World Development Co Ltd's annual dividend growth rate was -1.30%. Extended to a five-year horizon, this rate increased to 1.20% per year. And over the past decade, New World Development Co Ltd's annual dividends per share growth rate stands at 3.10%.
Based on New World Development Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of New World Development Co Ltd stock as of today is approximately 13.46%.
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, New World Development Co Ltd's dividend payout ratio is 5.03, which may suggest that the company's dividend is sustainable. New World Development Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks New World Development Co Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.