Anhui Anke Biotechnology (Group) (SZSE:300009) Will Pay A Dividend Of CN¥0.25

The board of Anhui Anke Biotechnology (Group) Co., Ltd. (SZSE:300009) has announced that it will pay a dividend of CN¥0.25 per share on the 27th of May. The dividend yield will be 2.6% based on this payment which is still above the industry average.

View our latest analysis for Anhui Anke Biotechnology (Group)

Anhui Anke Biotechnology (Group)'s Payment Has Solid Earnings Coverage

If the payments aren't sustainable, a high yield for a few years won't matter that much. Based on the last payment, Anhui Anke Biotechnology (Group) was quite comfortably earning enough to cover the dividend. This indicates that quite a large proportion of earnings is being invested back into the business.

The next year is set to see EPS grow by 16.2%. If the dividend continues along recent trends, we estimate the payout ratio will be 50%, which is in the range that makes us comfortable with the sustainability of the dividend.

Anhui Anke Biotechnology (Group) Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was CN¥0.0347 in 2014, and the most recent fiscal year payment was CN¥0.25. This implies that the company grew its distributions at a yearly rate of about 22% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Anhui Anke Biotechnology (Group) has grown earnings per share at 25% per year over the past five years. Anhui Anke Biotechnology (Group) is clearly able to grow rapidly while still returning cash to shareholders, positioning it to become a strong dividend payer in the future.

Anhui Anke Biotechnology (Group) Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Anhui Anke Biotechnology (Group) might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. See if management have their own wealth at stake, by checking insider shareholdings in Anhui Anke Biotechnology (Group) stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.