Universal Scientific Industrial (Shanghai) Co., Ltd.’s (SHSE:601231) dividend is being reduced from last year’s payment covering the same period to CN¥0.27 on the 5th of June. The dividend yield will be in the average range for the industry at 1.8%.
Check out our latest analysis for Universal Scientific Industrial (Shanghai)
Universal Scientific Industrial (Shanghai)’s Payment Has Solid Earnings Coverage
Solid dividend yields are great, but they only really help us if the payment is sustainable. However, Universal Scientific Industrial (Shanghai)’s earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.
Over the next year, EPS is forecast to expand by 71.6%. Assuming the dividend continues along recent trends, we think the payout ratio could be 20% by next year, which is in a pretty sustainable range.
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