Assessing the Sustainability and Growth of Genting Malaysia Bhd's Dividend Payments
Genting Malaysia Bhd (GMALY, Financial) recently announced a dividend of $0.47 per share, payable on 2024-04-22, with the ex-dividend date set for 2024-03-20. 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 look into Genting Malaysia Bhd's dividend performance and assess its sustainability.
What Does Genting Malaysia Bhd Do?
Genting Malaysia Bhd is a resort and casino company and is a subsidiary of the holdings company Genting. The company has two primary business segments: Leisure & Hospitality and Properties. The Leisure & Hospitality segment operates numerous resorts, many of which include casinos, theme parks, concerts, restaurants, and retail shopping locations. The flagship resort operates five hotels, an amusement park, and entertainment venues. The Properties segment controls and leases real estate. The company generates the vast majority of its revenue in Malaysia.
A Glimpse at Genting Malaysia Bhd's Dividend History
Genting Malaysia Bhd has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Genting Malaysia Bhd's Dividend Yield and Growth
As of today, Genting Malaysia Bhd currently has a 12-month trailing dividend yield of 4.86% and a 12-month forward dividend yield of 4.66%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Genting Malaysia Bhd's annual dividend growth rate was -18.30%. Based on Genting Malaysia Bhd's dividend yield and five-year growth rate, the 5-year yield on cost of Genting Malaysia Bhd stock as of today is approximately 4.86%.
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 2023-09-30, Genting Malaysia Bhd's dividend payout ratio is 25.75, which may suggest that the company's dividend is sustainable. Genting Malaysia Bhd's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Genting Malaysia Bhd's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 6 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Genting Malaysia Bhd's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Genting Malaysia Bhd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Genting Malaysia Bhd's revenue has increased by approximately -6.20% per year on average, a rate that underperforms approximately 69.66% of global competitors.
Concluding Thoughts on Genting Malaysia Bhd's Dividend Profile
In conclusion, Genting Malaysia Bhd's upcoming dividend payment reflects its history of consistent dividend distributions. While the company's dividend growth rate has experienced a decline, its current payout ratio and profitability rank indicate a potential for sustainable dividends. However, the revenue growth rate suggests there may be challenges ahead. Investors should consider these factors in light of Genting Malaysia Bhd's overall financial health and growth prospects. For those seeking high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener for further investment opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
