Saudi Arabia's IPO Boom Faces Multiple Challenges
Saudi Arabian firms have raised about $3 billion from new share sales this year, making it one of the world's hottest IPO markets. But a series of recent setbacks is threatening to take the sheen off that boom, Bloomberg's Laura Gardner Cuesta reports on Horizons Middle East & Africa.
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34 minutes ago
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A Closer Look At British American Tobacco (Malaysia) Berhad's (KLSE:BAT) Impressive ROE
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine British American Tobacco (Malaysia) Berhad (KLSE:BAT), by way of a worked example. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for British American Tobacco (Malaysia) Berhad is: 48% = RM176m ÷ RM368m (Based on the trailing twelve months to March 2025). The 'return' is the income the business earned over the last year. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.48 in profit. View our latest analysis for British American Tobacco (Malaysia) Berhad By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. Pleasingly, British American Tobacco (Malaysia) Berhad has a superior ROE than the average (16%) in the Tobacco industry. That's what we like to see. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. You can see the 3 risks we have identified for British American Tobacco (Malaysia) Berhad by visiting our risks dashboard for free on our platform here. Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. British American Tobacco (Malaysia) Berhad clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 2.06. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company. Of course British American Tobacco (Malaysia) Berhad may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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35 minutes ago
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My Favorite Ultra-High-Yield Dividend Stocks to Buy With $100 Right Now
Ares Capital offers an exceptionally high dividend yield. Enbridge is a low-risk stock with solid growth prospects and a sterling track record of dividend increases. Enterprise Products Partners is highly resilient and pays a juicy distribution. 10 stocks we like better than Ares Capital › I have a confession to make. I'm much more interested in dividend stocks than I've ever been before. Part of it is that I'm inching closer to retirement. While I don't rely on income from dividend stocks yet, it's appealing to me to have money returned to me regularly to reinvest. Dividend yield isn't my only consideration in selecting dividend stocks, but it's certainly a key consideration. I've found quite a few top-tier stocks with exceptionally high dividend yields, at least 4 times greater than the yield offered by the S&P 500. Many of them don't require a large upfront investment. Here are my favorite ultra-high-yield dividend stocks to buy with $100 right now. Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). It's managed by a subsidiary of Ares Management Corporation, a leading global alternative investment manager. Ares Capital provides direct loans to and invests in private middle-market companies in the U.S. This stock is cheap in two ways. First, its share price of under $22 is easily affordable. Second, Ares Capital's forward price-to-earnings ratio is only 10.7. While I like Ares Capital's valuation, I like its dividend even more. As a BDC, the company must return at least 90% of its income to shareholders as dividends. Ares Capital generates plenty of income to return, as evidenced by its lofty forward dividend yield of 8.95%. The company has paid stable to growing dividends for 63 consecutive quarters and counting. The total addressable market for Ares Capital is estimated to be around $5.4 trillion. The BDC market continues to expand as middle-market companies turn to direct lending. As one of the largest and most respected players in the industry, Ares Capital is well positioned to benefit from this market growth. When I first heard of Enbridge (NYSE: ENB) years ago, the company primarily focused on midstream energy operations. It's still a top player in the midstream energy industry, with 18,085 miles of crude pipeline and 18,952 miles of natural gas pipeline. However, Enbridge is also now the largest natural gas utility in North America and a significant producer of renewable power. I think this diversification makes Enbridge even more attractive. Its business is resilient throughout all economic and commodity cycles. Less than 1% of the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) is linked to commodity prices. And roughly 80% of Enbridge's EBITDA is protected from inflation. Enbridge has increased its dividend for an impressive 30 consecutive years. That streak seems highly likely to continue, considering the company's distributable cash-flow payout ratio is between 60% and 70%. This energy leader is no slouch with the amount of its dividend, either, with a forward dividend yield of 6.07%. You can scoop up one share of Enbridge for less than $45. That investment will buy you partial ownership in a relatively low-risk company that should provide reliable income plus respectable long-term growth prospects thanks to the increasing demand for natural gas. Another of my favorite ultra-high-yield dividend stocks is also a midstream energy leader. Enterprise Products Partners (NYSE: EPD) operates more than 50,000 miles of pipeline and owns assets that include natural gas processing trains and liquids storage facilities. Like Enbridge, Enterprise Products Partners is highly resilient. Around 90% of its long-term contracts are protected from inflation. The master limited partnership (MLP) has consistently generated strong distributable cash flow per unit during good times and bad times, the latter including the financial crisis of 2007 through 2009, the oil price collapse of 2015 through 2017, and the COVID-19 pandemic. Enterprise Products Partners has increased its distribution for 26 consecutive years. Its forward distribution yield is a juicy 6.93%. The MLP has also rewarded unitholders with unit buybacks. One unit of Enterprise Products Partners will cost you around $31. If you also bought a share each of Ares Capital and Enbridge, you'd still have a few dollars remaining from an initial $100. I don't think you'll find three better ultra-high-yield dividend stocks for this low price. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Keith Speights has positions in Ares Capital, Enbridge, and Enterprise Products Partners. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. My Favorite Ultra-High-Yield Dividend Stocks to Buy With $100 Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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My Favorite Ultra-High-Yield Dividend Stocks to Buy With $100 Right Now
Ares Capital offers an exceptionally high dividend yield. Enbridge is a low-risk stock with solid growth prospects and a sterling track record of dividend increases. Enterprise Products Partners is highly resilient and pays a juicy distribution. 10 stocks we like better than Ares Capital › I have a confession to make. I'm much more interested in dividend stocks than I've ever been before. Part of it is that I'm inching closer to retirement. While I don't rely on income from dividend stocks yet, it's appealing to me to have money returned to me regularly to reinvest. Dividend yield isn't my only consideration in selecting dividend stocks, but it's certainly a key consideration. I've found quite a few top-tier stocks with exceptionally high dividend yields, at least 4 times greater than the yield offered by the S&P 500. Many of them don't require a large upfront investment. Here are my favorite ultra-high-yield dividend stocks to buy with $100 right now. Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC). It's managed by a subsidiary of Ares Management Corporation, a leading global alternative investment manager. Ares Capital provides direct loans to and invests in private middle-market companies in the U.S. This stock is cheap in two ways. First, its share price of under $22 is easily affordable. Second, Ares Capital's forward price-to-earnings ratio is only 10.7. While I like Ares Capital's valuation, I like its dividend even more. As a BDC, the company must return at least 90% of its income to shareholders as dividends. Ares Capital generates plenty of income to return, as evidenced by its lofty forward dividend yield of 8.95%. The company has paid stable to growing dividends for 63 consecutive quarters and counting. The total addressable market for Ares Capital is estimated to be around $5.4 trillion. The BDC market continues to expand as middle-market companies turn to direct lending. As one of the largest and most respected players in the industry, Ares Capital is well positioned to benefit from this market growth. When I first heard of Enbridge (NYSE: ENB) years ago, the company primarily focused on midstream energy operations. It's still a top player in the midstream energy industry, with 18,085 miles of crude pipeline and 18,952 miles of natural gas pipeline. However, Enbridge is also now the largest natural gas utility in North America and a significant producer of renewable power. I think this diversification makes Enbridge even more attractive. Its business is resilient throughout all economic and commodity cycles. Less than 1% of the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) is linked to commodity prices. And roughly 80% of Enbridge's EBITDA is protected from inflation. Enbridge has increased its dividend for an impressive 30 consecutive years. That streak seems highly likely to continue, considering the company's distributable cash-flow payout ratio is between 60% and 70%. This energy leader is no slouch with the amount of its dividend, either, with a forward dividend yield of 6.07%. You can scoop up one share of Enbridge for less than $45. That investment will buy you partial ownership in a relatively low-risk company that should provide reliable income plus respectable long-term growth prospects thanks to the increasing demand for natural gas. Another of my favorite ultra-high-yield dividend stocks is also a midstream energy leader. Enterprise Products Partners (NYSE: EPD) operates more than 50,000 miles of pipeline and owns assets that include natural gas processing trains and liquids storage facilities. Like Enbridge, Enterprise Products Partners is highly resilient. Around 90% of its long-term contracts are protected from inflation. The master limited partnership (MLP) has consistently generated strong distributable cash flow per unit during good times and bad times, the latter including the financial crisis of 2007 through 2009, the oil price collapse of 2015 through 2017, and the COVID-19 pandemic. Enterprise Products Partners has increased its distribution for 26 consecutive years. Its forward distribution yield is a juicy 6.93%. The MLP has also rewarded unitholders with unit buybacks. One unit of Enterprise Products Partners will cost you around $31. If you also bought a share each of Ares Capital and Enbridge, you'd still have a few dollars remaining from an initial $100. I don't think you'll find three better ultra-high-yield dividend stocks for this low price. Before you buy stock in Ares Capital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Ares Capital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Keith Speights has positions in Ares Capital, Enbridge, and Enterprise Products Partners. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. My Favorite Ultra-High-Yield Dividend Stocks to Buy With $100 Right Now was originally published by The Motley Fool
