Geely Automobile Holdings Ltd’s Dividend Analysis
Exploring the Sustainability and Growth of Geely Automobile Holdings Ltd’s Dividends
Geely Automobile Holdings Ltd (GELYF) recently announced a dividend of $0.22 per share, payable on 2024-07-26, with the ex-dividend date set for 2024-06-11. 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 Geely Automobile Holdings Ltd’s dividend performance and assess its sustainability.
What Does Geely Automobile Holdings Ltd Do?
Based in Hangzhou, Zhejiang province, Geely Automobile Holdings manufactures and sells passenger vehicles and automotive parts. Geely is the largest local brand manufacturer and the third largest passenger vehicle brand in terms of sales volume in China. The firm formed a joint venture with Volvo in 2016 to build cars under the Lynk & Co brand. The brand targets a young audience with sales and marketing approaches closely resembling those of modern lifestyle brands. Including Lynk & Co, Geely sold about 1.7 million cars in 2023. The domestic market accounts for more than 80% of Geely’s revenue, with the rest coming from other parts of the world.
A Glimpse at Geely Automobile Holdings Ltd’s Dividend History
Geely Automobile Holdings Ltd has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Geely Automobile Holdings Ltd’s Dividend Yield and Growth
As of today, Geely Automobile Holdings Ltd currently has a 12-month trailing dividend yield of 2.18% and a 12-month forward dividend yield of 2.28%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Geely Automobile Holdings Ltd’s annual dividend growth rate was -8.70%. Extended to a five-year horizon, this rate decreased to -9.20% per year. And over the past decade, Geely Automobile Holdings Ltd’s annual dividends per share growth rate stands at an impressive 26.30%.
Based on Geely Automobile Holdings Ltd’s dividend yield and five-year growth rate, the 5-year yield on cost of Geely Automobile Holdings Ltd stock as of today is approximately 1.35%.
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 2023-12-31, Geely Automobile Holdings Ltd’s dividend payout ratio is 0.34.
Geely Automobile Holdings Ltd’s profitability rank offers an understanding of the company’s earnings prowess relative to its peers. GuruFocus ranks Geely Automobile Holdings Ltd’s profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each 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. Geely Automobile 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 Geely Automobile Holdings Ltd’s revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Geely Automobile Holdings Ltd’s revenue has increased by approximately 19.20% per year on average, a rate that outperforms approximately 75.93% 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, Geely Automobile Holdings Ltd’s earnings increased by approximately 0.80% per year on average, a rate that outperforms approximately 31.5% of global competitors. Lastly, the company’s 5-year EBITDA growth rate of -19.10%, which outperforms approximately 8.71% of global competitors.
Conclusion
Considering Geely Automobile Holdings Ltd’s consistent dividend payments, robust profitability, and promising growth metrics, the company stands as a compelling candidate for investors seeking dividend income. However, the varying dividend growth rates over different periods highlight the importance of monitoring economic conditions and company performance closely. For those looking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium users can utilize 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.
