Shanghai Gench Education Group Limited (HKG:1525) has announced that it will pay a dividend of CN¥0.10 per share on the 17th of June. This means the annual payment is 8.5% of the current stock price, which is above the average for the industry.
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Shanghai Gench Education Group’s Projected Earnings Seem Likely To Cover Future Distributions
We like to see robust dividend yields, but that doesn’t matter if the payment isn’t sustainable. Before making this announcement, Shanghai Gench Education Group 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 could expand by 6.3% if recent trends continue. If the dividend continues along recent trends, we estimate the payout ratio will be 33%, which is in the…
