Chow Tai Fook Jewellery Group Ltd's Dividend Analysis
In This Article:
Assessing the Upcoming Dividend and Historical Performance
Chow Tai Fook Jewellery Group Ltd (CJEWF) recently announced a dividend of $0.25 per share, payable on 2023-12-22, with the ex-dividend date set for 2023-12-08. 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 Chow Tai Fook Jewellery Group Ltd's dividend performance and assess its sustainability.
What Does Chow Tai Fook Jewellery Group Ltd Do?
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Chow Tai Fook Jewellery Group Ltd is engaged in the jewelry and watch business located in Mainland China. The company's geographical operating segment includes Mainland China and Hong Kong, Macau, and other markets. It generates maximum revenue from Mainland China. Its product categories include rings, bands, necklaces, pendants, earrings, chains, bracelets, and others. The company derives revenue from Gem-set, Gold products, Platinum/Karat gold products, and Watches.
A Glimpse at Chow Tai Fook Jewellery Group Ltd's Dividend History
Chow Tai Fook Jewellery Group Ltd has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Chow Tai Fook Jewellery Group Ltd's Dividend Yield and Growth
As of today, Chow Tai Fook Jewellery Group Ltd currently has a 12-month trailing dividend yield of 4.67% and a 12-month forward dividend yield of 4.67%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Chow Tai Fook Jewellery Group Ltd's annual dividend growth rate was 16.00%. Extended to a five-year horizon, this rate increased to 16.20% per year. And over the past decade, Chow Tai Fook Jewellery Group Ltd's annual dividends per share growth rate stands at 7.60%.
Based on Chow Tai Fook Jewellery Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Chow Tai Fook Jewellery Group Ltd stock as of today is approximately 9.89%.
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 2023-09-30, Chow Tai Fook Jewellery Group Ltd's dividend payout ratio is 0.76, which may suggest that the company's dividend may not be sustainable.