We Wouldn't Be Too Quick To Buy Jardine Matheson Holdings Limited (SGX:J36) Before It Goes Ex-Dividend
We Wouldn't Be Too Quick To Buy Jardine Matheson Holdings Limited (SGX:J36) Before It Goes Ex-Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Jardine Matheson Holdings Limited (SGX:J36) is about to go ex-dividend in just 3 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Meaning, you will need to purchase Jardine Matheson Holdings' shares before the 16th of March to receive the dividend, which will be paid on the 10th of May.
The company's next dividend payment will be US$1.60 per share. Last year, in total, the company distributed US$2.15 to shareholders. Looking at the last 12 months of distributions, Jardine Matheson Holdings has a trailing yield of approximately 4.4% on its current stock price of $48.63. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
View our latest analysis for Jardine Matheson Holdings
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Jardine Matheson Holdings distributed an unsustainably high 176% of its profit as dividends to shareholders last year. Without more sustainable payment behaviour, the dividend looks precarious. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. It paid out 12% of its free cash flow as dividends last year, which is conservatively low.
It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and Jardine Matheson Holdings fortunately did generate enough cash to fund its dividend. Still, if the company repeatedly paid a dividend greater than its profits, we'd be concerned. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Companies with falling earnings are riskier for dividend shareholders. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Jardine Matheson Holdings's earnings per share have plummeted approximately 35% a year over the previous five years.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Jardine Matheson Holdings's dividend payments per share have declined at 1.5% per year on average over the past 10 years, which is uninspiring.
The Bottom Line
Has Jardine Matheson Holdings got what it takes to maintain its dividend payments? It's never great to see earnings per share declining, especially when a company is paying out 176% of its profit as dividends, which we feel is uncomfortably high. Yet cashflow was much stronger, which makes us wonder if there are some large timing issues in Jardine Matheson Holdings's cash flows, or perhaps the company has written down some assets aggressively, reducing its income. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being.
So if you're still interested in Jardine Matheson Holdings despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. For example - Jardine Matheson Holdings has 3 warning signs we think you should be aware of.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
一些投資者依靠股息來增加他們的財富,如果你是股息偵探中的一員,你可能會感興趣地知道怡和控股有限公司(新加坡證券交易所股票代碼:J36)即將在3天內除息。除息日期是公司記錄日期的前一個工作日,也就是公司決定哪些股東有權獲得股息的日期。除息日期是重要的,因為每當買賣一隻股票時,交易至少需要兩個工作日才能結算。這意味著,你需要在3月16日之前購買怡和控股的股票才能獲得股息,股息將在5月10日支付。
該公司下一次派息將為每股1.60美元。去年,該公司總共向股東分配了2.15美元。看看過去12個月的分配情況,怡和控股目前的股價為48.63美元,往績收益率約為4.4%。股息是長期持有者投資回報的主要貢獻者,但前提是繼續支付股息。這就是為什麼我們應該總是檢查股息支付是否看起來可持續,以及公司是否在增長。
查看我們對怡和控股的最新分析
股息通常從公司利潤中支付,因此,如果一家公司支付的股息超過了它的收入,那麼它的股息通常被削減的風險更大。怡和控股去年將其利潤的176%作為股息分配給了股東,這是一個不可持續的高水平。如果沒有更可持續的支付行為,股息看起來不穩定。這就是說,即使是高利潤的公司有時也可能無法產生足夠的現金來支付股息,這就是為什麼我們應該總是檢查股息是否由現金流覆蓋。它去年支付了自由現金流的12%作為股息,這是保守的低水準。
令人失望的是,股息沒有被利潤覆蓋,但從股息可持續性的角度來看,現金更重要,怡和控股幸運的是產生了足夠的現金來為其股息提供資金。儘管如此,如果該公司一再支付高於利潤的股息,我們會感到擔憂。有能力持續支付高於利潤的股息的公司少之又少。
點擊此處查看該公司的派息率,以及分析師對其未來股息的估計。
盈利和股息一直在增長嗎?
盈利下降的公司對股息股東來說風險更大。如果收益下降,該公司被迫削減股息,投資者可能會眼睜睜地看著他們的投資價值化為烏有。怡和控股的每股收益在過去五年裡每年暴跌約35%。
大多數投資者評估一家公司的股息前景的主要方式是檢查歷史上的股息增長率。怡和控股的每股股息支出在過去10年裡平均每年下降1.5%,這並不令人振奮。
底線
怡和控股是否獲得了維持其股息支付的能力?看到每股收益下降從來都不是好事,特別是在一家公司將利潤的176%作為股息支付的情況下,我們認為這一比例高得令人不安。然而,現金流要強勁得多,這讓我們懷疑怡和控股的現金流是否存在一些重大的時機問題,或者該公司大幅減記了一些資產,從而減少了收入。從分紅的角度來看,這並不是一個有吸引力的組合,我們暫時傾向於不考慮這一點。
因此,如果你仍然對怡和控股感興趣,儘管它的股息質量很差,你應該很清楚這只股票面臨的一些風險。例如-怡和控股有限公司3個警示標誌我們認為你應該意識到。
一個常見的投資錯誤是購買你看到的第一隻有趣的股票。在這裡你可以找到高收益股息股的完整名單。
對這篇文章有什麼反饋嗎?擔心內容嗎?保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。
譯文內容由第三人軟體翻譯。
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