Yanlord Land Group (SGX:Z25) Has Affirmed Its Dividend Of S$0.068

April 28, 2022
  •  Updated
May 12, 2022
SGX:Z25
Source: Shutterstock

Yanlord Land Group Limited's (SGX:Z25) investors are due to receive a payment of S$0.068 per share on 6th of June. This means the annual payment is 5.7% of the current stock price, which is above the average for the industry.

View our latest analysis for Yanlord Land Group

Yanlord Land Group's Earnings Easily Cover the Distributions

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. However, Yanlord Land Group's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

Looking forward, earnings per share is forecast to fall by 6.0% over the next year. Assuming the dividend continues along recent trends, we believe the payout ratio could be 6.2%, which we are pretty comfortable with and we think is feasible on an earnings basis.

historic-dividend
SGX:Z25 Historic Dividend April 28th 2022

Yanlord Land Group's Dividend Has Lacked Consistency

Yanlord Land Group has been paying dividends for a while, but the track record isn't stellar. Due to this, we are a little bit cautious about the dividend consistency over a full economic cycle. Since 2013, the first annual payment was CN¥0.094, compared to the most recent full-year payment of CN¥0.32. This works out to be a compound annual growth rate (CAGR) of approximately 15% a year over that time. Despite the rapid growth in the dividend over the past number of years, we have seen the payments go down the past as well, so that makes us cautious.

Yanlord Land Group May Find It Hard To Grow The Dividend

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. However, Yanlord Land Group's EPS was effectively flat over the past five years, which could stop the company from paying more every year.

Our Thoughts On Yanlord Land Group's Dividend

Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. The payments haven't been particularly stable and we don't see huge growth potential, but with the dividend well covered by cash flows it could prove to be reliable over the short term. We would probably look elsewhere for an income investment.

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 example, we've identified 2 warning signs for Yanlord Land Group (1 is concerning!) that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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About SGX:Z25

Yanlord Land Group

Yanlord Land Group Limited, an investment holding company, operates as a real estate developer in the People's Republic of China, Singapore, and Hong Kong.

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)
Valuation6
Future Growth0
Past Performance2
Financial Health3
Dividends3

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

Very undervalued with mediocre balance sheet.