Regina Miracle International (Holdings) Limited’s (HKG:2199) investors will receive a payment of HK$0.022 per share on 2nd of October. Despite this increase, the dividend yield of 2.4% is only a modest boost to shareholder returns.
Regina Miracle International (Holdings) has solid earnings coverage for its dividend payment. The last dividend was easily covered by the company’s earnings, indicating that a large portion of earnings are being retained to grow the business. Analysts predict that EPS will be significantly higher next year, with a projected payout ratio of 15%.
However, Regina Miracle International (Holdings) has not maintained consistency in its dividend payments over the years. The dividend has fluctuated from HK$0.056 in 2016 to the most recent total annual payment of HK$0.057, growing at less than 1% per annum. The company’s EPS has also declined by around 13% per year over the past five years, which could potentially impact future dividend payments.
In summary, while the dividend increase is a positive sign, Regina Miracle International (Holdings) may not have a rock-solid dividend policy. The company generates sufficient cash to sustain the dividend for now, but its track record raises concerns. Investors may want to explore other income investment opportunities.
Market movements demonstrate the value of a consistent dividend policy. Investors should consider various factors beyond dividend payments when evaluating a company. Regina Miracle International (Holdings) has 3 warning signs (and 1 concerning sign) that investors should be aware of. If Regina Miracle International (Holdings) does not meet your investment criteria, consider exploring other top dividend stocks.
Disclaimer: This article by Simply Wall St is based on historical data and analyst forecasts, providing unbiased commentary. It is not financial advice and does not recommend buying or selling any stock. Investors should conduct their own research before making investment decisions.