Yahoo Finance China Longyuan Power Group Corp Ltd's Dividend Analysis
Exploring the Dividend Performance and Sustainability of China Longyuan Power Group Corp Ltd (CLPXY)
China Longyuan Power Group Corp Ltd (CLPXY) recently announced a dividend of $0.31 per share, payable on 2024-08-21, with the ex-dividend date set for 2024-06-13. 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 China Longyuan Power Group Corp Ltd's dividend performance and assess its sustainability.
What Does China Longyuan Power Group Corp Ltd Do?
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Longyuan is China's largest wind farm operator, with consolidated installed wind capacity of 27.8 gigawatts as of end-2023. It has wind farms spread across China, and has also expanded into other countries such as Canada and South Africa. Longyuan owns two coal-fired power plants in Jiangsu and operates other renewable assets such as solar, geothermal, and tidal energy on a limited scale. The consolidated installed capacity mix is about 78% wind, 5% thermal, and the remainder in other renewables. China Energy Investment, which was created through the merger of China Guodian Corporation and China Shenhua Group, is the major shareholder with a controlling stake of about 58.6%.
A Glimpse at China Longyuan Power Group Corp Ltd's Dividend History
China Longyuan Power Group Corp Ltd has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a yearly basis.
Breaking Down China Longyuan Power Group Corp Ltd's Dividend Yield and Growth
As of today, China Longyuan Power Group Corp Ltd currently has a 12-month trailing dividend yield of 1.66% and a 12-month forward dividend yield of 3.09%. This suggests an expectation of increased dividend payments over the next 12 months. The company's dividend yield of 1.66% is near a 10-year high and outperforms 27.8% of global competitors in the Utilities - Independent Power Producers industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
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, China Longyuan Power Group Corp Ltd's dividend payout ratio is 0.13.
China Longyuan Power Group Corp Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks China Longyuan Power Group Corp Ltd's profitability 9 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. China Longyuan Power Group Corp Ltd's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and China Longyuan Power Group Corp Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. China Longyuan Power Group Corp Ltd's revenue has increased by approximately 9.10% per year on average, a rate that underperforms approximately 56.95% 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, China Longyuan Power Group Corp Ltd's earnings increased by approximately 4.00% per year on average, a rate that underperforms approximately 55.06% of global competitors.
The company's 5-year EBITDA growth rate of 6.90%, which underperforms approximately 52.91% of global competitors.
Next Steps
Given China Longyuan Power Group Corp Ltd's consistent dividend payments, attractive dividend growth rate, manageable payout ratio, strong profitability, and growth metrics, the company remains an appealing prospect for income-focused investors. However, potential investors should also consider the relative underperformance in revenue and earnings growth rates compared to industry peers. For those interested in exploring further, 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.
