Exploring the dividend history, yield, growth, and sustainability of Axiata Group Bhd (AXXTF, Financial)
Axiata Group Bhd (AXXTF) recently announced a dividend of $0.05 per share, payable on 2023-10-18, with the ex-dividend date set for 2023-09-26. This announcement has put the spotlight on the company's dividend performance. In this article, we will delve into Axiata Group Bhd's dividend history, yield, growth rates, and sustainability using data from GuruFocus.
About Axiata Group Bhd
Axiata Group Bhd is a telecommunications company with a diverse business portfolio. The company operates in various segments including mobile services, fixed broadband, infrastructure, and other services such as digital business and fibre optic transmission. Axiata Group Bhd has a presence in several countries including Malaysia, Indonesia, Bangladesh, Sri Lanka, Nepal, and Cambodia.
Axiata Group Bhd's Dividend History
Since 2015, Axiata Group Bhd has maintained a consistent dividend payment record, currently distributing dividends on a quarterly basis.
Dividend Yield and Growth of Axiata Group Bhd
Currently, Axiata Group Bhd has a 12-month trailing dividend yield of 4.33% and a 12-month forward dividend yield of 6.35%, indicating an expected increase in dividend payments over the next 12 months.
Over the past three years, Axiata Group Bhd's annual dividend growth rate was 3.40%, decreasing to 3.10% per year over a five-year horizon. However, over the past decade, the annual dividends per share growth rate stands at -11.90%.
Based on the company's dividend yield and five-year growth rate, the 5-year yield on cost of Axiata Group Bhd stock is approximately 5.04%.
Assessing Dividend Sustainability
The dividend payout ratio of Axiata Group Bhd, which stands at 0.00 as of 2023-06-30, gives an insight into the portion of earnings the company distributes as dividends. A lower ratio indicates that the company retains a significant part of its earnings, ensuring funds for future growth and unexpected downturns.
Axiata Group Bhd's profitability rank is 6 out of 10, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.
Future Growth Prospects
Axiata Group Bhd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. The company's revenue per share and 3-year revenue growth rate indicate a strong revenue model. However, Axiata Group Bhd's revenue has increased by approximately -4.30% per year on average, a rate that underperforms approximately 77.51% of global competitors.
Conclusion
Axiata Group Bhd has demonstrated a consistent dividend payment record and shows signs of potential dividend growth. However, the sustainability of these dividends will be heavily dependent on the company's profitability and growth metrics. As such, investors should carefully consider these factors before making investment decisions. For more high-dividend yield stocks, GuruFocus Premium users can use the High Dividend Yield Screener.
