Assessing the Sustainability of Zijin Mining Group Co Ltd's Upcoming Dividend
Zijin Mining Group Co Ltd (ZIJMY, Financial) recently announced a dividend of $0.14 per share, payable on 2024-02-02, with the ex-dividend date set for 2023-12-12. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Zijin Mining Group Co Ltd's dividend performance and assess its sustainability.
What Does Zijin Mining Group Co Ltd Do?
Zijin Mining Group Co Ltd is focused on the exploration and development of gold, copper, and other metal mineral resources. The company's operating segments include Gold bullion; Processed, refined, and trading gold; Gold concentrates; Electrolytic copper & electrodeposited copper; Refined copper; Copper concentrates; Other concentrates; Zinc bullion, Environmental protection, trading, and others. It generates maximum revenue from the Processed, refined & trading gold segment. The Processed, refined, and trading gold segment is engaged in the production of gold bullion by processing gold concentrates produced by the group or purchased from external suppliers and gold bullion in the business of physical gold trading. Geographically, the majority of its revenue is derived from Mainland China.
A Glimpse at Zijin Mining Group Co Ltd's Dividend History
Zijin Mining Group Co Ltd has maintained a consistent dividend payment record since 2010, currently distributing dividends on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Zijin Mining Group Co Ltd's Dividend Yield and Growth
As of today, Zijin Mining Group Co Ltd's 12-month trailing dividend yield is 1.72%, with a 12-month forward dividend yield of 0.42%, indicating an expectation of decreased dividend payments over the next 12 months. Over the past three years, Zijin Mining Group Co Ltd's annual dividend growth rate was 26.00%, which decreased to 21.70% per year over a five-year horizon. Over the past decade, the company's annual dividends per share growth rate stands at 5.30%.
Based on Zijin Mining Group Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Zijin Mining Group Co Ltd stock as of today is approximately 4.59%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Zijin Mining Group Co Ltd's dividend payout ratio is 0.27.
Zijin Mining Group Co Ltd's profitability rank, at 8 out of 10 as of 2023-09-30, suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
Zijin Mining Group Co Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Its revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model, with revenue increasing by approximately 21.50% per year on average, outperforming approximately 72.25% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Zijin Mining Group Co Ltd's earnings increased by approximately 56.50% per year on average, outperforming approximately 93.31% of global competitors.
The company's 5-year EBITDA growth rate of 35.50% outperforms approximately 86.83% of global competitors, indicating strong earnings before interest, taxes, depreciation, and amortization.
Engaging Conclusion: The Dividend Perspective
In conclusion, Zijin Mining Group Co Ltd's upcoming dividend, alongside its historical dividend growth rate, payout ratio, profitability, and robust growth metrics, paints a picture of a potentially sustainable dividend. However, the expected decrease in dividend yield over the next 12 months warrants a closer watch for investors. With a solid foundation in profitability and growth, Zijin Mining Group Co Ltd may continue to be an attractive option for value investors focused on dividend income. Will Zijin Mining Group Co Ltd maintain its dividend attractiveness amidst fluctuating market conditions? Only time will tell. For investors seeking high-dividend yield stocks, GuruFocus Premium offers tools like the High Dividend Yield Screener to discover similar investment opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
