Rizhao Port Jurong (HKG:6117) Is Due To Pay A Dividend Of CN¥0.0271

Rizhao Port Jurong Co., Ltd.'s (HKG:6117) investors are due to receive a payment of CN¥0.0271 per share on 31st of July. This means the annual payment will be 4.5% of the current stock price, which is lower than the industry average.

Check out our latest analysis for Rizhao Port Jurong

Rizhao Port Jurong's Dividend Is Well Covered By Earnings

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Before making this announcement, Rizhao Port Jurong was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share could rise by 2.6% over the next year if the trend from the last few years continues. If the dividend continues along recent trends, we estimate the payout ratio will be 22%, which is in the range that makes us comfortable with the sustainability of the dividend.

Rizhao Port Jurong's Dividend Has Lacked Consistency

Even in its short history, we have seen the dividend cut. The last annual payment of CN¥0.024 was flat on the annual payment from3 years ago. It's encouraging to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth anyway, which makes this less attractive as an income investment.

The Dividend's Growth Prospects Are Limited

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. However, Rizhao Port Jurong has only grown its earnings per share at 2.6% per annum over the past five years. If Rizhao Port Jurong is struggling to find viable investments, it always has the option to increase its payout ratio to pay more to shareholders.

Our Thoughts On Rizhao Port Jurong's Dividend

Overall, we think Rizhao Port Jurong is a solid choice as a dividend stock, even though the dividend wasn't raised this year. While the payout ratios are a good sign, we are less enthusiastic about the company's dividend record. This looks like it could be a good dividend stock going forward, but we would note that the payout ratio has been at higher levels in the past so it could happen again.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for Rizhao Port Jurong that investors should take into consideration. Is Rizhao Port Jurong 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.