Changan Minsheng APLL Logistics (HKG:1292) Is Due To Pay A Dividend Of CN¥0.2191

Changan Minsheng APLL Logistics Co., Ltd. (HKG:1292) will pay a dividend of CN¥0.2191 on the 26th of September. This payment means that the dividend yield will be 7.3%, which is around the industry average.

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Changan Minsheng APLL Logistics' Projected Earnings Seem Likely To Cover Future Distributions

Solid dividend yields are great, but they only really help us if the payment is sustainable. The last dividend was quite easily covered by Changan Minsheng APLL Logistics' earnings. This indicates that quite a large proportion of earnings is being invested back into the business.

If the trend of the last few years continues, EPS will grow by 53.6% over the next 12 months. If the dividend continues on this path, the payout ratio could be 46% by next year, which we think can be pretty sustainable going forward.

Check out our latest analysis for Changan Minsheng APLL Logistics

Dividend Volatility

The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the annual payment back then was CN¥0.27, compared to the most recent full-year payment of CN¥0.20. Doing the maths, this is a decline of about 3.0% per year. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges.

The Dividend Looks Likely To Grow

Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. It's encouraging to see that Changan Minsheng APLL Logistics has been growing its earnings per share at 54% a year over the past five years. Changan Minsheng APLL Logistics is clearly able to grow rapidly while still returning cash to shareholders, positioning it to become a strong dividend payer in the future.

An additional note is that the company has been raising capital by issuing stock equal to 25% of shares outstanding in the last 12 months. Regularly doing this can be detrimental - it's hard to grow dividends per share when new shares are regularly being created.

Changan Minsheng APLL Logistics Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Changan Minsheng APLL Logistics might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 4 warning signs for Changan Minsheng APLL Logistics that investors should take into consideration. 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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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.