Stock Analysis

CN Logistics International Holdings' (HKG:2130) Shareholders Will Receive A Bigger Dividend Than Last Year

  •  Updated
SEHK:2130
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CN Logistics International Holdings Limited's (HKG:2130) dividend will be increasing from last year's payment of the same period to HK$0.13 on 30th of September. Even though the dividend went up, the yield is still quite low at only 3.2%.

Check out our latest analysis for CN Logistics International Holdings

CN Logistics International Holdings' Payment Has Solid Earnings Coverage

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Based on the last payment, CN Logistics International Holdings was quite comfortably earning enough to cover the dividend. This means that a large portion of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 7.2%. If the dividend continues along recent trends, we estimate the payout ratio could reach 88%, which is on the higher side, but certainly still feasible.

historic-dividend
SEHK:2130 Historic Dividend September 1st 2022

CN Logistics International Holdings Is Still Building Its Track Record

It is tough to make a judgement on how stable a dividend is when the company hasn't been paying one for very long. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. CN Logistics International Holdings has grown its EPS by 44% over the past 12 months. It's nice to see earnings per share rising, but one year is too short a period to get excited about. Were this trend to continue, we'd be interested. The company doesn't have any problems growing, despite returning a lot of capital to shareholders, which is a very nice combination for a dividend stock to have. We do note though, one year is too short a time to be drawing strong conclusions about a company's future prospects.

We Really Like CN Logistics International Holdings' Dividend

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. 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.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 2 warning signs for CN Logistics International Holdings that investors should know about before committing capital to this stock. Is CN Logistics International Holdings not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

Valuation is complex, but we're helping make it simple.

Find out whether CN Logistics International Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About SEHK:2130

CN Logistics International Holdings

CN Logistics International Holdings Limited provides logistics solutions Hong Kong, Mainland China, Taiwan, Italy, and internationally.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation0
Future Growth0
Past Performance6
Financial Health5
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Outstanding track record with excellent balance sheet.