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.
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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.
一些投資者依靠股息來增加他們的財富,如果你是股息偵探中的一員,你可能會感興趣地知道上海機電實業有限公司(上海證券交易所股票代碼:600835)即將在兩天內除息。除息日期通常被設定為記錄日期之前的一個工作日,也就是你必須作為股東出現在公司賬簿上才能獲得股息的截止日期。重要的是要知道除息日期,因為股票的任何交易都需要在記錄日期或之前結算。這意味着,你需要在7月13日之前購買上海機電工業股份有限公司的股票才能獲得股息,股息將於7月13日支付。
公司下一次派息為每股0.29元人民幣。去年,該公司總共向股東分配了0.29元人民幣。看看過去12個月的分配情況,上海機電工業股份有限公司的往績收益率約為2.2%,目前的股價為13.41元。對許多股東來説,股息是一個重要的收入來源,但企業的健康狀況對維持這些股息至關重要。因此,讀者應該經常查看上海機電工業有限公司是否能夠增加股息,或者股息是否可能被削減。
查看我們對上海機電實業有限公司的最新分析
如果一家公司支付的股息超過了它賺取的股息,那麼股息可能會變得不可持續--這幾乎不是一個理想的情況。幸運的是,上海機電工業股份有限公司的派息率不高,僅佔利潤的41%。一個有用的次要檢查可以是評估上海機電工業有限公司是否產生了足夠的自由現金流來支付股息。在過去的一年裏,它支付了超過一半(62%)的自由現金流,這對大多數公司來説都在平均範圍內。
看到上海機電股份有限公司的股息由利潤和現金流覆蓋,這是積極的,因為這通常是股息可持續的跡象,較低的派息率通常意味着在股息削減之前有更大的安全邊際。
點擊此處查看該公司的派息率,以及分析師對其未來股息的估計。
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上證綜指:600835歷史性股息2022年7月10日
盈利和股息一直在增長嗎?
從分紅的角度來看,收益縮水的企業很棘手。如果收益下降,該公司被迫削減股息,投資者可能會眼睜睜地看着他們的投資價值化為烏有。考慮到這一點,我們對上海機電工業有限公司在過去五年中收益以每年13%的速度下降感到不安。最終,當每股收益下降時,可以支付股息的蛋糕的規模就會縮小。
衡量一家公司股息前景的另一個關鍵方法是衡量其歷史股息增長率。上海機電工業股份有限公司的股息支付實際上與10年前持平。如果一家公司的股息持平,而收益卻在下降,這通常是一個跡象,表明它正在支付更大比例的收益。如果收入下降到足夠大的程度,這可能會變得不可持續。
總結一下
上海機電工業股份有限公司值得為其股息而收購嗎?它的每股收益一直在大幅下降,儘管它只支付了不到一半的收入和超過一半的現金流作為股息。這兩個派息率似乎都不是一個直接的問題,但我們擔心的是收益。雖然它確實有一些好的方面,但我們有點矛盾,需要更多的東西才能讓我們相信上海機電工業有限公司的分紅好處。
因此,如果你想對上海機電工業股份有限公司做更多的挖掘,你會發現瞭解這隻股票面臨的風險是值得的。例如,我們發現2上海機電實業有限公司的警示標誌我們建議您在投資業務之前考慮這些問題。
一個常見的投資錯誤是購買你看到的第一隻有趣的股票。在這裏你可以找到高收益股息股的完整名單。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。