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Yahoo
20-05-2025
- Business
- Yahoo
Carlsberg Brewery Malaysia Berhad (KLSE:CARLSBG) Is Increasing Its Dividend To MYR0.35
The board of Carlsberg Brewery Malaysia Berhad (KLSE:CARLSBG) has announced that it will be paying its dividend of MYR0.35 on the 4th of July, an increased payment from last year's comparable dividend. This will take the annual payment to 5.2% of the stock price, which is above what most companies in the industry pay. 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. If the payments aren't sustainable, a high yield for a few years won't matter that much. Prior to this announcement, Carlsberg Brewery Malaysia Berhad's dividend was making up a very large proportion of earnings and perhaps more concerning was that it was 119% of cash flows. Paying out such a high proportion of cash flows can expose the business to needing to cut the dividend if the business runs into some challenges. The next year is set to see EPS grow by 20.7%. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 60% which brings it into quite a comfortable range. See our latest analysis for Carlsberg Brewery Malaysia Berhad Although the company has a long dividend history, it has been cut at least once in the last 10 years. The annual payment during the last 10 years was MYR0.61 in 2015, and the most recent fiscal year payment was MYR1.00. This implies that the company grew its distributions at a yearly rate of about 5.1% over that duration. It's good to see the dividend growing at a decent rate, but the dividend has been cut at least once in the past. Carlsberg Brewery Malaysia Berhad might have put its house in order since then, but we remain cautious. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Earnings have grown at around 3.0% a year for the past five years, which isn't massive but still better than seeing them shrink. Carlsberg Brewery Malaysia Berhad's earnings per share has barely grown, which is not ideal - perhaps this is why the company pays out the majority of its earnings to shareholders. When the rate of return on reinvestment opportunities falls below a certain minimum level, companies often elect to pay a larger dividend instead. This is why many mature companies often have larger dividend yields. Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. The payments are bit high to be considered sustainable, and the track record isn't the best. We would probably look elsewhere for an income investment. 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 instance, we've picked out 2 warning signs for Carlsberg Brewery Malaysia Berhad that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. 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
Yahoo
31-03-2025
- Business
- Yahoo
Carlsberg Brewery Malaysia Berhad (KLSE:CARLSBG) Will Pay A Larger Dividend Than Last Year At MYR0.35
Carlsberg Brewery Malaysia Berhad (KLSE:CARLSBG) will increase its dividend from last year's comparable payment on the 4th of July to MYR0.35. This will take the annual payment to 5.2% of the stock price, which is above what most companies in the industry pay. We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. At the time of the last dividend payment, Carlsberg Brewery Malaysia Berhad was paying out a very large proportion of what it was earning and 119% of cash flows. This is certainly a risk factor, as reduced cash flows could force the company to pay a lower dividend. Over the next year, EPS is forecast to expand by 20.7%. Assuming the dividend continues along the course it has been charting recently, our estimates show the payout ratio being 60% which brings it into quite a comfortable range. Check out our latest analysis for Carlsberg Brewery Malaysia Berhad The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the annual payment back then was MYR0.61, compared to the most recent full-year payment of MYR1.00. This means that it has been growing its distributions at 5.1% per annum over that time. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Earnings per share has been crawling upwards at 3.0% per year. Slow growth and a high payout ratio could mean that Carlsberg Brewery Malaysia Berhad has maxed out the amount that it has been able to pay to shareholders. That's fine as far as it goes, but we're less enthusiastic as this often signals that the dividend is likely to grow slower in the future. Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. The payments are bit high to be considered sustainable, and the track record isn't the best. We don't think Carlsberg Brewery Malaysia Berhad is a great stock to add to your portfolio if income is your focus. 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. Taking the debate a bit further, we've identified 2 warning signs for Carlsberg Brewery Malaysia Berhad that investors need to be conscious of moving forward. Is Carlsberg Brewery 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.
