CMOC Group Limited (HKG:3993) has announced an increase in its dividend payment to CN¥0.1696 on July 26th, compared to last year’s payment. This brings the annual dividend to 2.3% of the current stock price, which is in line with industry averages.
It is important to ensure that a dividend is sustainable in the long term. Fortunately, CMOC Group’s earnings easily cover the dividend, indicating that the business is using its profits to support growth. With an expected EPS growth of 51.8% next year, the payout ratio is estimated to be 26%, which is within a comfortable range for dividend sustainability.
Despite experiencing a dividend cut at least once in the past 10 years, CMOC Group has shown a compound annual growth rate of approximately 13% in its dividend payments. The company’s earnings per share have been increasing at a rate of 24% per annum over the last five years, suggesting potential for continued dividend growth.
Overall, CMOC Group appears to be a promising income stock, especially with the increase in dividend payment this year. The company’s ability to cover its dividend payments with earnings and translate them into cash flow is a positive sign for investors. While a consistent dividend policy inspires investor confidence, it is essential to consider various factors beyond dividend payments when evaluating a company. Companies with growing earnings tend to be strong long-term dividend stocks.
For a more comprehensive analysis of CMOC Group, including fair value estimates, risks, dividends, insider transactions, and financial health, investors can access our free analysis. As always, it is important to conduct thorough research and consider individual financial goals before making investment decisions.