Exploring the Dividend Profile of JD.com Inc
JD.com Inc (JD, Financial) recently announced a dividend of $0.76 per share, payable on 2024-04-29, with the ex-dividend date set for 2024-04-04. 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 JD.com Inc's dividend performance and assess its sustainability.
What Does JD.com Inc Do?
JD.com is a leading e-commerce platform in China, competing closely with giants like Pinduoduo and Alibaba. It offers a wide selection of authentic products with speedy and reliable delivery. The company has built its own nationwide fulfilment infrastructure and last-mile delivery network, staffed by its own employees, which supports both its online direct sales, its online marketplace, and omnichannel businesses.
A Glimpse at JD.com Inc's Dividend History
JD.com Inc has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a yearly basis. JD.com Inc has increased its dividend each year since -, earning the title of a dividend king, a prestigious label for companies with a history of increasing dividends for at least the past 2024 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down JD.com Inc's Dividend Yield and Growth
As of today, JD.com Inc currently has a 12-month trailing dividend yield of 2.23% and a 12-month forward dividend yield of 2.76%. This suggests an expectation of increased dividend payments over the next 12 months. Furthermore, based on JD.com Inc's dividend yield and five-year growth rate, the 5-year yield on cost of JD.com Inc stock as of today is approximately 2.23%.
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, JD.com Inc's dividend payout ratio is 0.20. Additionally, JD.com Inc's profitability rank of 6 out of 10 as of 2023-12-31, suggests fair profitability, with the company reporting net profit in 5 out of the past 10 years.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must exhibit robust growth metrics. JD.com Inc's growth rank of 6 out of 10 suggests a fair growth outlook. The company's revenue per share and the 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of about 9.30%, outperforming approximately 62.74% of global competitors. Moreover, JD.com Inc's 3-year EPS growth rate shows its earnings have increased by an average of 18.30% per year, outperforming approximately 59.9% of global competitors.
Next Steps in Evaluating JD.com Inc's Dividends
In conclusion, JD.com Inc's consistent dividend payments, growth in dividend rates, manageable payout ratio, fair profitability, and solid growth metrics collectively paint a promising picture for its dividend sustainability. Investors should continue to monitor these indicators to make informed decisions about the stock's potential as a long-term income investment. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium offers a valuable tool with 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.
