Yahoo Finance APT Satellite Holdings Ltd: A Comprehensive Look at its Dividend Performance and Sustainability
An analysis of APT Satellite Holdings Ltd's dividend history, yield, growth, and future prospects
APT Satellite Holdings Ltd (ASEJF) recently announced a dividend of $0.05 per share, payable on 2023-10-11, with the ex-dividend date set for 2023-09-18. 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 deep dive into APT Satellite Holdings Ltd's dividend performance and assess its sustainability.
What Does APT Satellite Holdings Ltd Do?
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APT Satellite Holdings Ltd is an investment holding company. Through its subsidiaries, the company is principally engaged in the maintenance, operation, and provision of satellite transponder capacity and related services; satellite-based broadcasting and telecommunications services; and other services. From a regional perspective, the company's revenue is derived from customers in Hong Kong, Greater China, Southeast Asia, and other regions.
A Glimpse at APT Satellite Holdings Ltd's Dividend History
APT Satellite Holdings Ltd has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down APT Satellite Holdings Ltd's Dividend Yield and Growth
As of today, APT Satellite Holdings Ltd currently has a 12-month trailing dividend yield of 10.81% and a 12-month forward dividend yield of 10.81%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, APT Satellite Holdings Ltd's annual dividend growth rate was 16.80%. Extended to a five-year horizon, this rate increased to 22.20% per year. And over the past decade, APT Satellite Holdings Ltd's annual dividends per share growth rate stands at an impressive 17.30%.
Based on APT Satellite Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of APT Satellite Holdings Ltd stock as of today is approximately 29.46%.
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 2023-06-30, APT Satellite Holdings Ltd's dividend payout ratio is 0.95. This may suggest that the company's dividend may not be sustainable.
APT Satellite Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks APT Satellite Holdings Ltd's profitability 8 out of 10 as of 2023-06-30, 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. APT Satellite Holdings Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and APT Satellite Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. APT Satellite Holdings Ltd's revenue has increased by approximately -3.80% per year on average, a rate that underperforms than approximately 76.78% 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, APT Satellite Holdings Ltd's earnings increased by approximately -13.80% per year on average, a rate that underperforms than approximately 79.54% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -16.50%, which underperforms than approximately 90.52% of global competitors.
Conclusion
Despite the impressive dividend growth rate and profitability rank, APT Satellite Holdings Ltd's high payout ratio and underperformance in revenue and earnings growth may raise concerns about the sustainability of its dividends in the long run. Investors should closely monitor these metrics and consider them in their investment decisions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article first appeared on GuruFocus.
