Exploring the Sustainability and Growth of Dividends
Xinyi Glass Holdings Ltd (XYIGY) recently announced a dividend of $0.95 per share, payable on 2024-08-22, with the ex-dividend date set for 2024-06-05. 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 Xinyi Glass Holdings Ltd's dividend performance and assess its sustainability.
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Xinyi Glass Holdings Ltd is engaged in the production and sales of float glass products, automobile glass products, construction glass products and a variety of related products in the PRC and Malaysia. It produces and sells a range of glass products, including automobile glass, energy-saving architectural glass, high-quality float glass, and other glass products for different commercial and industrial applications. Its glass products are sold to customers in over 140 countries and territories, including the PRC, Hong Kong, the United States, Canada, Australia, New Zealand, and countries in Asia, the Middle East, Europe, Africa, and America. Its segments include float glass; automobile glass; and architectural glass out of which the float glass segment accounts for the majority of revenue.
Xinyi Glass Holdings Ltd's Dividend Analysis
A Glimpse at Xinyi Glass Holdings Ltd's Dividend History
Xinyi Glass Holdings Ltd has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Xinyi Glass Holdings Ltd's Dividend Analysis
Breaking Down Xinyi Glass Holdings Ltd's Dividend Yield and Growth
As of today, Xinyi Glass Holdings Ltd currently has a 12-month trailing dividend yield of 4.88% and a 12-month forward dividend yield of 6.42%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Xinyi Glass Holdings Ltd's annual dividend growth rate was 0.70%. Extended to a five-year horizon, this rate increased to 8.70% per year. And over the past decade, Xinyi Glass Holdings Ltd's annual dividends per share growth rate stands at an impressive 17.30%.
Based on Xinyi Glass Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Xinyi Glass Holdings Ltd stock as of today is approximately 7.41%.
Xinyi Glass 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 2023-12-31, Xinyi Glass Holdings Ltd's dividend payout ratio is 0.37.
Xinyi Glass Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Xinyi Glass Holdings Ltd's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Xinyi Glass Holdings Ltd's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Xinyi Glass Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Xinyi Glass Holdings Ltd's revenue has increased by approximately 11.80% per year on average, a rate that outperforms approximately 62.94% 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, Xinyi Glass Holdings Ltd's earnings increased by approximately -0.90% per year on average, a rate that outperforms approximately 41.7% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 7.70%, which outperforms approximately 52.48% of global competitors.
Conclusion: A Promising Outlook for Dividend Investors
Given Xinyi Glass Holdings Ltd's solid dividend payments, growth rate, payout ratio, profitability, and robust growth metrics, the company presents a promising opportunity for dividend investors. For those interested in exploring further, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
