Yahoo Finance Qifu Technology Inc's Dividend Analysis
Understanding Qifu Technology Inc's Dividend Performance and Sustainability
Qifu Technology Inc (NASDAQ:QFIN) recently announced a dividend of $0.58 per share, payable on 2024-05-24, with the ex-dividend date set for 2024-04-12. 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 Qifu Technology Inc's dividend performance and assess its sustainability.
What Does Qifu Technology Inc Do?
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Qifu Technology Inc is a Credit-Tech platform in China. It provides credit services more accessible and personalized to consumers and SMEs through Credit-Tech services to financial institutions, whereby it deploys its technology solutions to help financial institutions identify the diversified needs of consumers and SMEs, effectively access prospective borrowers that are creditworthy through multi-channels, enhance credit assessment on prospective borrowers, and manage credit risks and improve collection strategies and efficiency, among others.
A Glimpse at Qifu Technology Inc's Dividend History
Qifu Technology Inc has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Qifu Technology Inc's Dividend Yield and Growth
As of today, Qifu Technology Inc currently has a 12-month trailing dividend yield of 3.44% and a 12-month forward dividend yield of 5.65%. This suggests an expectation of increased dividend payments over the next 12 months.
Based on Qifu Technology Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Qifu Technology Inc stock as of today is approximately 3.44%.
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, Qifu Technology Inc's dividend payout ratio is 0.13.
Qifu Technology Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Qifu Technology Inc's profitability 5 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 6 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Qifu Technology Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Qifu Technology Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Qifu Technology Inc's revenue has increased by approximately 22.50% per year on average, a rate that outperforms approximately 76.75% 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, Qifu Technology Inc's earnings increased by approximately 14.80% per year on average, a rate that outperforms approximately 56.52% of global competitors.
Concluding Thoughts on Qifu Technology Inc's Dividend Prospects
With a solid track record of dividend payments, a promising dividend yield, and a low payout ratio, Qifu Technology Inc presents an attractive proposition for income-focused investors. The company's fair profitability and growth metrics further bolster confidence in its ability to sustain and potentially grow its dividend distributions in the future. Investors considering Qifu Technology Inc as part of their portfolio for steady income streams should also weigh these factors against their investment strategy and market conditions. As always, it's prudent to perform thorough due diligence before making investment decisions. For those seeking high-dividend yield opportunities, GuruFocus Premium users can explore the High Dividend Yield Screener for potential investments.
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.
