Dongyue Group (HKG: 189) pays less dividends than last year


Dongyue Group Limited’s (HKG: 189) the dividend will be reduced to HK $ 0.14 on July 16. This payout brings the dividend yield up to 2.4%, which is only a slight boost to overall returns.

Discover our latest analysis for the Dongyue group

Dongyue Group Profits Easily Cover Distributions

It would be nice if the yield was higher, but we should also check whether higher levels of dividend payouts would be viable. However, Dongyue Group profits easily cover the dividend. This means that most of what the business earns is used to help it grow.

Next year is expected to see EPS increase by 37.8%. If the dividend continues on that path, the payout ratio could be 34% by next year, which we believe can be quite sustainable going forward.

SEHK: 189 Historical Dividend May 28, 2021

Dividend volatility

Although the company has been paying a dividend for a long time, it has reduced the dividend at least once in the past 10 years. As of 2011, the first annual payment was CNY 0.11, compared to CNY 0.12 for the full year. Its dividends have grown by less than 1% per year during this period. We are happy to see that the dividend has increased, but with a limited growth rate and fluctuations in payments, the total return to shareholders may be limited.

The dividend is expected to increase

Since the dividend has been reduced in the past, we need to check if profits are increasing and if this could lead to higher dividends in the future. The Dongyue Group has impressed us by increasing EPS by 28% per year over the past five years. The earnings per share are growing at a steady pace and the payout ratio is low, which in our opinion is an ideal combination in a dividend stock because the company can quite easily increase the dividend in the future.

Dongyue Group Looks Like a Big Dividend

It’s usually not great to see the dividend cut, but we don’t think it should happen much, if at all in the future, given that the Dongyue Group has the makings of a solid income. in the future. Reducing the amount he pays as a dividend can protect the company’s balance sheet, keeping the dividend lasting longer. Considering all of this, this looks like a good dividend opportunity.

Investors generally tend to favor companies with a consistent and stable dividend policy over those with an irregular policy. Still, there are a host of other factors that investors need to consider, aside from dividend payments, when analyzing a business. For example, we have chosen 2 warning signs for the Dongyue group that investors should consider. If you are a dividend investor, you can also check out our organized list of high performing dividend stocks.

If you are looking for stocks to buy, use the cheapest platform * ranked # 1 overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, currencies, bonds and funds in 135 markets, all from one integrated account.

This Simply Wall St article is general in nature. It is not a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
*Interactive Brokers Ranked Least Expensive Broker By Annual Online Review 2020

Do you have any comments on this article? Concerned about the content? Get in touch with us directly. You can also send an email to the editorial team (at)


About Catherine Wilson

Check Also

10 extremely undervalued dividend stocks to buy: Morningstar analysts

Dividend stocks have held up much better than growth stocks this year, according to Morningstar. …

Leave a Reply

Your email address will not be published.