Exploring the Dividend Performance and Sustainability of ANTA Sports Products Ltd
ANTA Sports Products Ltd (ANPDY, Financial) recently announced a dividend of $3.67 per share, payable on 2024-06-11, with the ex-dividend date set for 2024-05-13. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into ANTA Sports Products Ltd's dividend performance and assess its sustainability.
What Does ANTA Sports Products Ltd Do?
ANTA Sports Products Ltd is the largest Chinese sportswear company, engaging in the design, manufacturing, and marketing of sportswear. Brands under ANTA's management include the Anta core brand, Fila, Descente, Sprandi, Kolon, and KingKow. As of the end of 2020, the company had 12,260 stores, of which 9,922 were Anta stores and 2,006 were Fila stores.
A Glimpse at ANTA Sports Products Ltd's Dividend History
ANTA Sports Products Ltd has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down ANTA Sports Products Ltd's Dividend Yield and Growth
ANTA Sports Products Ltd currently has a 12-month trailing dividend yield of 1.67% and a 12-month forward dividend yield of 2.13%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, ANTA Sports Products Ltd's annual dividend growth rate was 36.10%. Extended to a five-year horizon, this rate decreased to 17.80% per year. And over the past decade, ANTA Sports Products Ltd's annual dividends per share growth rate stands at an impressive 12.40%.
Based on ANTA Sports Products Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of ANTA Sports Products Ltd stock as of today is approximately 3.79%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, ANTA Sports Products Ltd's dividend payout ratio is 0.39.
ANTA Sports Products Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks ANTA Sports Products Ltd's profitability 10 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. ANTA Sports Products Ltd's growth rank of 10 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and ANTA Sports Products Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. ANTA Sports Products Ltd's revenue has increased by approximately 16.10% per year on average, a rate that outperforms approximately 58.51% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, ANTA Sports Products Ltd's earnings increased by approximately 20.80% per year on average, a rate that outperforms approximately 51.15% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 17.10%, which outperforms approximately 65.82% of global competitors.
Next Steps
In conclusion, ANTA Sports Products Ltd's robust dividend payments, impressive growth rate, sustainable payout ratio, and strong profitability metrics position it as a potentially lucrative option for value investors focused on dividends. As the company continues to expand and innovate within the sportswear industry, its financial health suggests that it is well-equipped to maintain or potentially increase its dividend payouts in the future. For those interested in exploring further, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
