An In-depth Analysis of BDULF's Dividend Performance and Sustainability
Bangkok Dusit Medical Services PCL(BDULF, Financial) recently announced a dividend of $0.35 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-12. 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 deep dive into Bangkok Dusit Medical Services PCLs dividend performance and assess its sustainability.
What Does Bangkok Dusit Medical Services PCL Do?
Bangkok Dusit Medical Services PCL operates a network of hospitals throughout Thailand under the Bangkok Hospital, Phyathai Hospital, Samitivej Hospital, Paolo Hospital, BNH Hospital, and Royal International Hospital brands. In addition to the firm's core hospital business, it operates a variety of other businesses. The other businesses support the hospital business and include a medical laboratory and manufacture and distribution of medicine and pharmaceutical products. Bangkok Dusit's hospital operations generate the vast majority of its revenue.
A Glimpse at Bangkok Dusit Medical Services PCL's Dividend History
Bangkok Dusit Medical Services PCL has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Bangkok Dusit Medical Services PCL's Dividend Yield and Growth
As of today, Bangkok Dusit Medical Services PCL currently has a 12-month trailing dividend yield of 2.11% and a 12-month forward dividend yield of 2.37%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Bangkok Dusit Medical Services PCL's annual dividend growth rate was 4.40%. Extended to a five-year horizon, this rate increased to 12.90% per year. And over the past decade, Bangkok Dusit Medical Services PCL's annual dividends per share growth rate stands at an impressive 16.00%.
Based on Bangkok Dusit Medical Services PCL's dividend yield and five-year growth rate, the 5-year yield on cost of Bangkok Dusit Medical Services PCL stock as of today is approximately 3.87%.
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 2023-06-30, Bangkok Dusit Medical Services PCL's dividend payout ratio is 0.73. And this may suggest that the company's dividend may not be sustainable.
Bangkok Dusit Medical Services PCL's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bangkok Dusit Medical Services PCL's profitability 8 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Bangkok Dusit Medical Services PCL's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Bangkok Dusit Medical Services PCL's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bangkok Dusit Medical Services PCL's revenue has increased by approximately 3.30% per year on average, a rate that underperforms than approximately 67.78% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Bangkok Dusit Medical Services PCL's earnings increased by approximately -7.20% per year on average, a rate that underperforms than approximately 67.71% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -1.10%, which underperforms than approximately 69.34% of global competitors.
Next Steps
In conclusion, while Bangkok Dusit Medical Services PCL has a commendable track record of consistent dividends, the sustainability of these payments may be in question considering the company's payout ratio. However, the company's profitability and growth metrics paint a promising picture. Investors should closely monitor these factors to make informed decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
