China Resources Mixc Lifestyle Services (HKG:1209) Will Pay A Larger Dividend Than Last Year At CN¥0.243

China Resources Mixc Lifestyle Services Limited's (HKG:1209) dividend will be increasing from last year's payment of the same period to CN¥0.243 on 27th of October. This takes the annual payment to 2.0% of the current stock price, which unfortunately is below what the industry is paying.

View our latest analysis for China Resources Mixc Lifestyle Services

China Resources Mixc Lifestyle Services' Earnings Easily Cover The Distributions

While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. The last dividend was quite comfortably covered by China Resources Mixc Lifestyle Services' earnings, but it was a bit tighter on the cash flow front. By paying out so much of its cash flows, this could indicate that the company has limited opportunities for investment and growth.

Looking forward, earnings per share is forecast to rise by 68.9% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 53%, which is in the range that makes us comfortable with the sustainability of the dividend.

China Resources Mixc Lifestyle Services Is Still Building Its Track Record

The company has maintained a consistent dividend for a few years now, but we would like to see a longer track record before relying on it. Since 2021, the dividend has gone from CN¥0.132 total annually to CN¥0.624. This works out to be a compound annual growth rate (CAGR) of approximately 117% a year over that time. It is always nice to see strong dividend growth, but with such a short payment history we wouldn't be inclined to rely on it until a longer track record can be developed.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that China Resources Mixc Lifestyle Services has been growing its earnings per share at 54% a year over the past three years. China Resources Mixc Lifestyle Services is clearly able to grow rapidly while still returning cash to shareholders, positioning it to become a strong dividend payer in the future.

Our Thoughts On China Resources Mixc Lifestyle Services' Dividend

Overall, we always like to see the dividend being raised, but we don't think China Resources Mixc Lifestyle Services will make a great income stock. The company hasn't been paying a very consistent dividend over time, despite only paying out a small portion of earnings. We don't think China Resources Mixc Lifestyle Services is a great stock to add to your portfolio if income is your focus.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 22 China Resources Mixc Lifestyle Services analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is China Resources Mixc Lifestyle Services not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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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.