COSCO SHIPPING Holdings Co Ltd's Dividend Analysis

GuruFocus Research

3 June 2024 at 7:02 am·3-min read

Exploring the Sustainability and Growth of COSCO SHIPPING Holdings Co Ltd's Dividends

COSCO SHIPPING Holdings Co Ltd (CICOY) recently announced a dividend of $0.16 per share, payable on 2024-07-15, with the ex-dividend date set for 2024-06-03. 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 COSCO SHIPPING Holdings Co Ltd's dividend performance and assess its sustainability.

What Does COSCO SHIPPING Holdings Co Ltd Do?

Warning! GuruFocus has detected 8 Warning Signs with CICOY.
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COSCO SHIPPING Holdings Co Ltd is an investment holding company. The company operates primarily in the Container shipping business, Terminal business, and Corporate and other operations. It generates maximum revenue from the Container shipping business segment. Its geographical segments include America, Europe, Asia Pacific, Mainland China, and Other international markets.

COSCO SHIPPING Holdings Co Ltd's Dividend Analysis

A Glimpse at COSCO SHIPPING Holdings Co Ltd's Dividend History

COSCO SHIPPING Holdings Co Ltd has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Breaking Down COSCO SHIPPING Holdings Co Ltd's Dividend Yield and Growth

As of today, COSCO SHIPPING Holdings Co Ltd currently has a 12-month trailing dividend yield of 15.86% and a 12-month forward dividend yield of 6.08%. This suggests an expectation of decreased dividend payments over the next 12 months.

Based on COSCO SHIPPING Holdings Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of COSCO SHIPPING Holdings Co Ltd stock as of today is approximately 15.86%.

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, COSCO SHIPPING Holdings Co Ltd's dividend payout ratio is 1.33, which may suggest that the company's dividend may not be sustainable.

COSCO SHIPPING Holdings Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks COSCO SHIPPING Holdings Co Ltd's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. COSCO SHIPPING Holdings Co Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.

Revenue is the lifeblood of any company, and COSCO SHIPPING Holdings Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. COSCO SHIPPING Holdings Co Ltd's revenue has increased by approximately -2.30% per year on average, a rate that underperforms approximately 79.02% 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, COSCO SHIPPING Holdings Co Ltd's earnings increased by approximately 31.00% per year on average, a rate that underperforms approximately 30.79% of global competitors.

Lastly, the company's 5-year EBITDA growth rate of 193.00%, which underperforms approximately 0.44% of global competitors.

Conclusion: Evaluating Dividend Sustainability

While COSCO SHIPPING Holdings Co Ltd offers an enticing high yield, the sustainability of its dividends is contingent upon several factors including payout ratio, profitability, and growth metrics. Investors should keep a close eye on these indicators to gauge the potential for ongoing dividend payments. 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.

This article first appeared on GuruFocus.

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