Kerry Logistics Network Ltd's Dividend Analysis
In This Article:
Exploring the Dividend Performance and Sustainability of Kerry Logistics Network Ltd (KRRYF)
Kerry Logistics Network Ltd (KRRYF) recently announced a dividend of $0.13 per share, payable on 2024-06-06, with the ex-dividend date set for 2024-05-24. 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 Kerry Logistics Network Ltd's dividend performance and assess its sustainability.
What Does Kerry Logistics Network Ltd Do?
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Kerry Logistics Network, or KLN, is a leading Asian diversified logistics service provider with a global presence. KLN is the number one non-vessel operating common carrier, or NVOCC, by volume for transpacific trades in 2022. Its business consists of international freight forwarding (air freight, ocean freight, and cross-border road freight forwarding services), integrated logistics mainly across Asia, and e-commerce and express delivery services. KLN has been majority owned by and consolidated under the international segment of China's leading logistics company S.F. Holding, or SF, since September 2021.
A Glimpse at Kerry Logistics Network Ltd's Dividend History
Kerry Logistics Network Ltd has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kerry Logistics Network Ltd's Dividend Yield and Growth
As of today, Kerry Logistics Network Ltd currently has a 12-month trailing dividend yield of 3.30% and a 12-month forward dividend yield of 1.55%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Kerry Logistics Network Ltd's annual dividend growth rate was 17.50%. Extended to a five-year horizon, this rate increased to 23.60% per year. Based on Kerry Logistics Network Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Kerry Logistics Network Ltd stock as of today is approximately 9.52%.
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, Kerry Logistics Network Ltd's dividend payout ratio is 0.72, which may suggest that the company's dividend may not be sustainable. Kerry Logistics Network Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kerry Logistics Network Ltd's profitability 8 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.