Understanding the Dividend History, Yield, and Growth of ESR Group Ltd (ESRCF, Financial)
ESR Group Ltd(ESRCF) recently announced a dividend of $0.13 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-11. 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 deep dive into ESR Group Ltd's dividend performance and assess its sustainability.
Company Overview: ESR Group Ltd
ESR Group, or ESR, is one of the largest real asset managers in the Asia-Pacific, with USD 145 billion in total assets under management as of Dec. 31, 2022. Most of its earnings are derived from fund management, where it manages underlying assets in investment vehicles such as a fund or REIT for fee income and a share of profits. It also develops and holds investment properties on its balance sheet for rental income and capital appreciation and will divest them into its managed funds and REITs over time to unlock and recycle the capital into other investment opportunities. In addition, to align its interest with its capital partners, ESR coinvests in the funds and REITs that it manages where it generates dividend income, pro rata earnings and value appreciation.
ESR Group Ltd's Dividend History
ESR Group Ltd has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a bi-annually basis. ESR Group Ltd has increased its dividend each year since -. The stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 2023 years.
ESR Group Ltd's Dividend Yield and Growth
As of today, ESR Group Ltd currently has a 12-month trailing dividend yield of 2.27% and a 12-month forward dividend yield of 2.27%. This suggests an expectation of same dividend payments over the next 12 months.
ESR Group Ltd's dividend yield of 2.27% is near a 10-year high and outperforms than 29.41 of global competitors in the Real Estate industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Based on ESR Group Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of ESR Group Ltd stock as of today is approximately 2.27%.
Assessing Dividend Sustainability: 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 2023-06-30, ESR Group Ltd's dividend payout ratio is 0.29.
ESR Group Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks ESR Group Ltd's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 7 years out of past 10 years.
ESR Group Ltd's Growth Metrics: A Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. ESR Group Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and ESR Group Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. ESR Group Ltd's revenue has increased by approximately 12.90% per year on average, a rate that outperforms than approximately 70.72% 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, ESR Group Ltd's earnings increased by approximately 13.00% per year on average, a rate that outperforms than approximately 65.63% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 16.10%, which outperforms than approximately 76.68% of global competitors.
Conclusion
In conclusion, ESR Group Ltd's consistent dividend payments, coupled with its solid growth rate and profitability, make it a promising prospect for income investors. The company's impressive dividend growth rate, low payout ratio, and strong growth metrics indicate a sustainable dividend policy. However, investors should always consider the overall financial health of the company and the broader market conditions before making investment decisions.
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