Latest news with #MYR0.74
Yahoo
21-04-2025
- Business
- Yahoo
United Plantations Berhad (KLSE:UTDPLT) Is Paying Out A Dividend Of MYR0.74
United Plantations Berhad's (KLSE:UTDPLT) investors are due to receive a payment of MYR0.74 per share on 9th of May. This makes the dividend yield 5.0%, which will augment investor returns quite nicely. We've discovered 1 warning sign about United Plantations Berhad. View them for free. We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Prior to this announcement, United Plantations Berhad's dividend was only 64% of earnings, however it was paying out 126% of free cash flows. While the company may be more focused on returning cash to shareholders than growing the business at this time, we think that a cash payout ratio this high might expose the dividend to being cut if the business ran into some challenges. EPS is set to grow by 20.3% over the next year if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could reach 119%, which probably can't continue without starting to put some pressure on the balance sheet. See our latest analysis for United Plantations Berhad While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The dividend has gone from an annual total of MYR0.392 in 2015 to the most recent total annual payment of MYR1.14. This implies that the company grew its distributions at a yearly rate of about 11% over that duration. Dividends have grown rapidly over this time, but with cuts in the past we are not certain that this stock will be a reliable source of income in the future. Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. United Plantations Berhad has impressed us by growing EPS at 20% per year over the past five years. The company doesn't have any problems growing, despite returning a lot of capital to shareholders, which is a very nice combination for a dividend stock to have. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. While United Plantations Berhad is earning enough to cover the payments, the cash flows are lacking. Overall, we don't think this company has the makings of a good income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for United Plantations Berhad that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. 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. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
Nestlé (Malaysia) Berhad's (KLSE:NESTLE) Dividend Will Be MYR0.74
The board of Nestlé (Malaysia) Berhad (KLSE:NESTLE) has announced that it will pay a dividend of MYR0.74 per share on the 15th of May. Based on this payment, the dividend yield will be 2.3%, which is lower than the average for the industry. View our latest analysis for Nestlé (Malaysia) Berhad It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Prior to this announcement, the company was paying out 101% of what it was earning. Without profits and cash flows increasing, it would be difficult for the company to continue paying the dividend at this level. Looking forward, earnings per share is forecast to rise by 38.1% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 73%, which would make us comfortable with the sustainability of the dividend, despite the levels currently being quite high. The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from MYR2.35 total annually to MYR1.79. Doing the maths, this is a decline of about 2.7% per year. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges. Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. In the last five years, Nestlé (Malaysia) Berhad's earnings per share has shrunk at approximately 9.2% per annum. If the company is making less over time, it naturally follows that it will also have to pay out less in dividends. Earnings are predicted to grow over the next year, but we would remain cautious until a track record of earnings growth is established. Overall, the dividend looks like it may have been a bit high, which explains why it has now been cut. The company's earnings aren't high enough to be making such big distributions, and it isn't backed up by strong growth or consistency either. Considering all of these factors, we wouldn't rely on this dividend if we wanted to live on the income. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Just as an example, we've come across 2 warning signs for Nestlé (Malaysia) Berhad you should be aware of, and 1 of them is a bit concerning. Is Nestlé (Malaysia) Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. 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.
