Exploring the Sustainability and Performance of Smoore International Holdings Ltd's Dividends
Smoore International Holdings Ltd (SMORF, Financial) recently announced a dividend of $0.05 per share, payable on 2024-06-17, with the ex-dividend date set for 2024-05-30. 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 Smoore International Holdings Ltd's dividend performance and assess its sustainability.
What Does Smoore International Holdings Ltd Do?
Smoore International Holdings Ltd offers vaping technology solutions, including manufacturing vaping devices and vaping components for Heat-not-burn products. It operates in three segments namely research, design and manufacturing of closed-system vaping devices and vaping components for tobacco companies and independent vaping companies, and research, design, manufacturing, and sale of self-branded open-system vaping devices, or APV, for retail clients and new business such as atomization in medical treatment to provide patients with inhalation drug delivery products on a basis of atomization technology. The company generates maximum revenue from Vaping devices and components, other than APV.
A Glimpse at Smoore International Holdings Ltd's Dividend History
Smoore International Holdings Ltd has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Smoore International Holdings Ltd's Dividend Yield and Growth
As of today, Smoore International Holdings Ltd currently has a 12-month trailing dividend yield of 1.78% and a 12-month forward dividend yield of 1.37%. This suggests an expectation of decreased dividend payments over the next 12 months. Based on Smoore International Holdings Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Smoore International Holdings Ltd stock as of today is approximately 1.78%.
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, Smoore International Holdings Ltd's dividend payout ratio is 0.41. Smoore International Holdings Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Smoore International Holdings Ltd's profitability 8 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 8 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Smoore International Holdings Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Smoore International Holdings Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Smoore International Holdings Ltd's revenue has increased by approximately -1.70% per year on average, a rate that underperforms approximately 79.07% 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, Smoore International Holdings Ltd's earnings increased by approximately -13.90% per year on average, a rate that underperforms approximately 94.74% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 15.00%, which underperforms approximately 33.33% of global competitors.
Next Steps
Considering Smoore International Holdings Ltd's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors should weigh these factors carefully against their investment strategy. While the company shows good profitability and a commitment to maintaining dividends, the challenges in growth metrics suggest careful monitoring of future performance. 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.
