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 Shanghai Dazhong Public Utilities(Group) Co.,Ltd. (SHSE:600635) is about to go ex-dividend in just 4 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Therefore, if you purchase Shanghai Dazhong Public Utilities(Group)Ltd's shares on or after the 20th of July, you won't be eligible to receive the dividend, when it is paid on the 20th of July.
The company's next dividend payment will be CN¥0.05 per share. Last year, in total, the company distributed CN¥0.05 to shareholders. Based on the last year's worth of payments, Shanghai Dazhong Public Utilities(Group)Ltd has a trailing yield of 1.6% on the current stock price of CN¥3.13. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Shanghai Dazhong Public Utilities(Group)Ltd has been able to grow its dividends, or if the dividend might be cut.
View our latest analysis for Shanghai Dazhong Public Utilities(Group)Ltd
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Shanghai Dazhong Public Utilities(Group)Ltd reported a loss last year, so it's not great to see that it has continued paying a dividend. Considering the lack of profitability, we also need to check if the company generated enough cash flow to cover the dividend payment. If cash earnings don't cover the dividend, the company would have to pay dividends out of cash in the bank, or by borrowing money, neither of which is long-term sustainable. It paid out 99% of its free cash flow in the form of dividends last year, which is outside the comfort zone for most businesses. Cash flows are usually much more volatile than earnings, so this could be a temporary effect - but we'd generally want to look more closely here.
Click here to see how much of its profit Shanghai Dazhong Public Utilities(Group)Ltd paid out over the last 12 months.
SHSE:600635 Historic Dividend July 15th 2022
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. Shanghai Dazhong Public Utilities(Group)Ltd was unprofitable last year and, unfortunately, the general trend suggests its earnings have been in decline over the last five years, making us wonder if the dividend is sustainable at all.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Shanghai Dazhong Public Utilities(Group)Ltd has delivered 0.7% dividend growth per year on average over the past 10 years.
Remember, you can always get a snapshot of Shanghai Dazhong Public Utilities(Group)Ltd's financial health, by checking our visualisation of its financial health, here.
The Bottom Line
Is Shanghai Dazhong Public Utilities(Group)Ltd worth buying for its dividend? It's hard to get used to Shanghai Dazhong Public Utilities(Group)Ltd paying a dividend despite reporting a loss over the past year. Worse, the dividend was not well covered by cash flow. Overall it doesn't look like the most suitable dividend stock for a long-term buy and hold investor.
Although, if you're still interested in Shanghai Dazhong Public Utilities(Group)Ltd and want to know more, you'll find it very useful to know what risks this stock faces. To that end, you should learn about the 3 warning signs we've spotted with Shanghai Dazhong Public Utilities(Group)Ltd (including 2 which shouldn't be ignored).
If you're in the market for strong dividend payers, we recommend checking our selection of top 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上海大眾公用事業(集團)有限公司。(上海證券交易所股票代碼:600635)將在4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。重要的是要知道除息日期,因為股票的任何交易都需要在記錄日期或之前結算。因此,如果您在7月20日或之後購買上海大眾公用事業(集團)有限公司的股票,當7月20日支付股息時,您將沒有資格獲得股息。
公司下一次派息為每股0.05元人民幣。去年,該公司總共向股東分配了0.05元人民幣。根據去年的支付金額,上海大眾公用事業(集團)有限公司的往績收益率為1.6%,目前的股價為3.13元。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。因此,讀者應該經常查看上海大眾公用事業(集團)有限公司是否能夠增加股息,或者股息是否可能被削減。
查看我們對上海大眾公用事業(集團)有限公司的最新分析
股息通常從公司收益中支付。如果一家公司支付的股息超過了它的利潤,那麼股息可能是不可持續的。上海大眾公用事業(集團)有限公司去年報告虧損,因此看到它繼續分紅並不是一件好事。考慮到缺乏盈利能力,我們還需要檢查公司是否產生了足夠的現金流來支付股息。如果現金收益不足以支付股息,該公司將不得不用銀行現金支付股息,或者通過借款支付股息,這兩種方式都不是長期可持續的。它去年以股息的形式支付了99%的自由現金流,這超出了大多數企業的舒適區。現金流的波動性通常比收益大得多,因此這可能是暫時的影響--但我們通常希望更仔細地研究一下。
點擊這裏查看上海大眾公用事業(集團)有限公司在過去12個月中支付了多少利潤。
上證綜指:600635歷史性股息2022年7月15日
盈利和股息一直在增長嗎?
盈利下降的公司對股息股東來説風險更大。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着他們的投資價值化為烏有。上海大眾公用事業(集團)有限公司去年沒有盈利,不幸的是,總趨勢表明其收益在過去五年裏一直在下降,這讓我們懷疑股息是否可持續。
衡量一家公司股息前景的另一個關鍵方法是衡量其歷史股息增長率。上海大眾公用事業(集團)有限公司在過去10年中平均每年實現0.7%的股息增長。
請記住,您可以隨時通過查看我們對上海大眾公用事業(集團)有限公司財務狀況的可視化了解其財務狀況的快照。
底線
上海大眾公用事業(集團)有限公司值得買來分紅嗎?上海大眾公用事業(集團)有限公司儘管在過去一年中報告虧損,但仍然支付股息,這讓人很難適應。更糟糕的是,現金流並沒有很好地覆蓋股息。總體而言,對於長期買入並持有的投資者來説,它看起來不是最合適的股息股票。
不過,如果你仍然對上海大眾公用事業(集團)有限公司感興趣,並想了解更多,你會發現瞭解這隻股票面臨的風險是非常有用的。為此,您應該瞭解3個警示標誌我們已經發現了上海大眾公用事業(集團)有限公司(包括2家不容忽視的公司)。
如果您正在尋找強大的股息支付者,我們建議查看我們精選的頂級股利股票。
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。