Jiangsu Zhongshe Group (SZSE:002883) Has Announced That Its Dividend Will Be Reduced To CN¥0.065

Jiangsu Zhongshe Group Co., Ltd.’s (SZSE:002883) dividend payment has been reduced to CN¥0.065 on July 5th, resulting in a dividend yield of 0.7%. While this may only provide a modest boost to overall returns, the company’s earnings easily cover the distributions, with a payout ratio of 26% considered comfortable. However, the dividend has lacked consistency over the years, declining by about 1.1% annually since 2018. With earnings per share also falling at 6.7% per year, the future growth of the dividend is doubtful. Overall, while the company is generating sufficient cash to maintain the dividend for now, it may not be a top-tier income providing stock. Investors may prefer companies with a more stable dividend policy.