Hangzhou Tigermed Consulting (SZSE:300347) Is Increasing Its Dividend To CN¥0.568

Hangzhou Tigermed Consulting Co., Ltd's (SZSE:300347) dividend will be increasing from last year's payment of the same period to CN¥0.568 on 12th of July. Based on this payment, the dividend yield for the company will be 1.2%, which is fairly typical for the industry.

View our latest analysis for Hangzhou Tigermed Consulting

Hangzhou Tigermed Consulting's Dividend Is Well Covered By Earnings

We aren't too impressed by dividend yields unless they can be sustained over time. However, prior to this announcement, Hangzhou Tigermed Consulting's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 59.7%. If the dividend continues on this path, the payout ratio could be 22% by next year, which we think can be pretty sustainable going forward.

Hangzhou Tigermed Consulting Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of CN¥0.0667 in 2014 to the most recent total annual payment of CN¥0.568. This works out to be a compound annual growth rate (CAGR) of approximately 24% a year over that time. 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

The company's investors will be pleased to have been receiving dividend income for some time. Hangzhou Tigermed Consulting has seen EPS rising for the last five years, at 23% per annum. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future.

We Really Like Hangzhou Tigermed Consulting's Dividend

Overall, a dividend increase is always good, and we think that Hangzhou Tigermed Consulting is a strong income stock thanks to its track record and growing earnings. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 18 analysts we track are forecasting for Hangzhou Tigermed Consulting for free with public analyst estimates for the company. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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