Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Shanghai Mechanical & Electrical Industry Co.,Ltd. (SHSE:600835) is about to go ex-dividend in just two days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase Shanghai Mechanical & Electrical IndustryLtd's shares before the 13th of July to receive the dividend, which will be paid on the 13th of July.
The company's next dividend payment will be CN¥0.29 per share. Last year, in total, the company distributed CN¥0.29 to shareholders. Looking at the last 12 months of distributions, Shanghai Mechanical & Electrical IndustryLtd has a trailing yield of approximately 2.2% on its current stock price of CN¥13.41. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Shanghai Mechanical & Electrical IndustryLtd has been able to grow its dividends, or if the dividend might be cut.
See our latest analysis for Shanghai Mechanical & Electrical IndustryLtd
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately Shanghai Mechanical & Electrical IndustryLtd's payout ratio is modest, at just 41% of profit. A useful secondary check can be to evaluate whether Shanghai Mechanical & Electrical IndustryLtd generated enough free cash flow to afford its dividend. It paid out more than half (62%) of its free cash flow in the past year, which is within an average range for most companies.
It's positive to see that Shanghai Mechanical & Electrical IndustryLtd's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
SHSE:600835 Historic Dividend July 10th 2022
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're discomforted by Shanghai Mechanical & Electrical IndustryLtd's 13% per annum decline in earnings in the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Shanghai Mechanical & Electrical IndustryLtd's dividend payments are effectively flat on where they were 10 years ago. If a company's dividend stays flat while earnings are in decline, this is typically a sign that it is paying out a larger percentage of its earnings. This can become unsustainable if earnings fall far enough.
To Sum It Up
Is Shanghai Mechanical & Electrical IndustryLtd worth buying for its dividend? Its earnings per share have been declining meaningfully, although it is paying out less than half its income and more than half its cash flow as dividends. Neither payout ratio appears an immediate concern, but we're concerned about the earnings. While it does have some good things going for it, we're a bit ambivalent and it would take more to convince us of Shanghai Mechanical & Electrical IndustryLtd's dividend merits.
So if you want to do more digging on Shanghai Mechanical & Electrical IndustryLtd, you'll find it worthwhile knowing the risks that this stock faces. For example, we've found 2 warning signs for Shanghai Mechanical & Electrical IndustryLtd that we recommend you consider before investing in the business.
A common investing mistake is buying the first interesting stock you see. Here you can find a full 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.
一些投资者依靠股息来增加他们的财富,如果你是股息侦探中的一员,你可能会感兴趣地知道上海机电实业有限公司(上海证券交易所股票代码:600835)即将在两天内除息。除息日期通常被设定为记录日期之前的一个工作日,也就是你必须作为股东出现在公司账簿上才能获得股息的截止日期。重要的是要知道除息日期,因为股票的任何交易都需要在记录日期或之前结算。这意味着,你需要在7月13日之前购买上海机电工业股份有限公司的股票才能获得股息,股息将于7月13日支付。
公司下一次派息为每股0.29元人民币。去年,该公司总共向股东分配了0.29元人民币。看看过去12个月的分配情况,上海机电工业股份有限公司的往绩收益率约为2.2%,目前的股价为13.41元。对许多股东来说,股息是一个重要的收入来源,但企业的健康状况对维持这些股息至关重要。因此,读者应该经常查看上海机电工业有限公司是否能够增加股息,或者股息是否可能被削减。
查看我们对上海机电实业有限公司的最新分析
如果一家公司支付的股息超过了它赚取的股息,那么股息可能会变得不可持续--这几乎不是一个理想的情况。幸运的是,上海机电工业股份有限公司的派息率不高,仅占利润的41%。一个有用的次要检查可以是评估上海机电工业有限公司是否产生了足够的自由现金流来支付股息。在过去的一年里,它支付了超过一半(62%)的自由现金流,这对大多数公司来说都在平均范围内。
看到上海机电股份有限公司的股息由利润和现金流覆盖,这是积极的,因为这通常是股息可持续的迹象,较低的派息率通常意味着在股息削减之前有更大的安全边际。
点击此处查看该公司的派息率,以及分析师对其未来股息的估计。
上证综指:600835历史性股息2022年7月10日
盈利和股息一直在增长吗?
从分红的角度来看,收益缩水的企业很棘手。如果收益下降,该公司被迫削减股息,投资者可能会眼睁睁地看着他们的投资价值化为乌有。考虑到这一点,我们对上海机电工业有限公司在过去五年中收益以每年13%的速度下降感到不安。最终,当每股收益下降时,可以支付股息的蛋糕的规模就会缩小。
衡量一家公司股息前景的另一个关键方法是衡量其历史股息增长率。上海机电工业股份有限公司的股息支付实际上与10年前持平。如果一家公司的股息持平,而收益却在下降,这通常是一个迹象,表明它正在支付更大比例的收益。如果收入下降到足够大的程度,这可能会变得不可持续。
总结一下
上海机电工业股份有限公司值得为其股息而收购吗?它的每股收益一直在大幅下降,尽管它只支付了不到一半的收入和超过一半的现金流作为股息。这两个派息率似乎都不是一个直接的问题,但我们担心的是收益。虽然它确实有一些好的方面,但我们有点矛盾,需要更多的东西才能让我们相信上海机电工业有限公司的分红好处。
因此,如果你想对上海机电工业股份有限公司做更多的挖掘,你会发现了解这只股票面临的风险是值得的。例如,我们发现2上海机电实业有限公司的警示标志我们建议您在投资业务之前考虑这些问题。
一个常见的投资错误是购买你看到的第一只有趣的股票。在这里你可以找到高收益股息股的完整名单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。