The board of Shanghai Industrial Holdings Limited (HKG:363) has announced that it will pay a dividend on the 18th of June, with investors receiving HK$0.52 per share. This means the dividend yield will be fairly typical at 8.0%.
Shanghai Industrial Holdings’ Projected Earnings Seem Likely To Cover Future Distributions
Solid dividend yields are great, but they only really help us if the payment is sustainable. Before making this announcement, Shanghai Industrial Holdings was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.
Over the next year, EPS is forecast to expand by 3.6%. If the dividend continues along recent trends, we estimate the payout ratio will be 36%, which is in the range that makes us comfortable with the…
