Pan-United's (SGX:P52) Upcoming Dividend Will Be Larger Than Last Year's

Yahoo

22-04-2025

Pan-United Corporation Ltd (SGX:P52) has announced that it will be increasing its periodic dividend on the 16th of May to SGD0.023, which will be 28% higher than last year's comparable payment amount of SGD0.018. This makes the dividend yield about the same as the industry average at 4.8%.
We've discovered 1 warning sign about Pan-United. View them for free.
Solid dividend yields are great, but they only really help us if the payment is sustainable. The last dividend was quite easily covered by Pan-United's earnings. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth.
Looking forward, earnings per share is forecast to rise by 46.2% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 32% by next year, which is in a pretty sustainable range.
View our latest analysis for Pan-United
The company has a long dividend track record, but it doesn't look great with cuts in the past. The annual payment during the last 10 years was SGD0.0425 in 2015, and the most recent fiscal year payment was SGD0.03. This works out to be a decline of approximately 3.4% per year over that time. A company that decreases its dividend over time generally isn't what we are looking for.
Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Pan-United has seen EPS rising for the last five years, at 15% per annum. Shareholders are getting plenty of the earnings returned to them, which combined with strong growth makes this quite appealing.
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've picked out 1 warning sign for Pan-United that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
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