Tianjin Port Development Holdings (HKG:3382) Will Pay A Larger Dividend Than Last Year At HK$0.0473

Tianjin Port Development Holdings Limited's (HKG:3382) dividend will be increasing from last year's payment of the same period to HK$0.0473 on 22nd of July. This takes the dividend yield to 8.3%, which shareholders will be pleased with.

See our latest analysis for Tianjin Port Development Holdings

Tianjin Port Development Holdings' Payment Has Solid Earnings Coverage

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. However, Tianjin Port Development Holdings' earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.

If the trend of the last few years continues, EPS will grow by 13.4% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio will be 35%, which is in the range that makes us comfortable with the sustainability of the dividend.

Dividend Volatility

The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2014, the annual payment back then was HK$0.0526, compared to the most recent full-year payment of HK$0.0473. This works out to be a decline of approximately 1.1% per year over that time. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems.

The Dividend Looks Likely To Grow

Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Tianjin Port Development Holdings has impressed us by growing EPS at 13% per year over the past five years. Tianjin Port Development Holdings definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Tianjin Port Development Holdings Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Tianjin Port Development Holdings is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. 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. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 1 warning sign for Tianjin Port Development Holdings that investors need to be conscious of moving forward. 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.