Exploring the Dividend Status, Growth Rate, and Sustainability of PT Astra Agro Lestari Tbk (AAGRY, Financial)
PT Astra Agro Lestari Tbk (AAGRY) recently announced a dividend of $0.03 per share, payable on November 8, 2023, with the ex-dividend date set for October 6, 2023. As investors eagerly anticipate this forthcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. With the help of GuruFocus data, let's delve into PT Astra Agro Lestari Tbk's dividend performance and evaluate its sustainability.
Understanding PT Astra Agro Lestari Tbk's Operations
PT Astra Agro Lestari Tbk is a key player in the cultivation of oil palm plantations and operation of oil palm mills and refineries across Southeast Asia. The company produces crude palm oil and palm kernel oil from its own plantations and purchases products harvested from oil palm trees from smaller third parties in communities surrounding its plantations. Astra Agro Lestari has also established marketing offices to assist in exporting its refined product to various regions throughout Asia. It has implemented mechanization, automation, and a water management system to streamline processes and enhance efficiency.
PT Astra Agro Lestari Tbk's Dividend History
Since 2014, PT Astra Agro Lestari Tbk has consistently distributed dividends on a bi-annual basis. The chart below provides a historical perspective of the company's annual Dividends Per Share.
Deciphering PT Astra Agro Lestari Tbk's Dividend Yield and Growth
As of today, PT Astra Agro Lestari Tbk boasts a 12-month trailing dividend yield of 5.68% and a 12-month forward dividend yield of 5.64%. This implies an anticipated decrease in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 25.60%. However, this rate decreased to -8.90% per year over a five-year horizon, and over the past decade, the annual dividends per share growth rate stands at -10.50%. As of today, the 5-year yield on cost of PT Astra Agro Lestari Tbk stock is approximately 3.56%.
Is PT Astra Agro Lestari Tbk's Dividend Sustainable?
To evaluate the sustainability of the dividend, one must scrutinize the company's payout ratio. The dividend payout ratio reveals the proportion of earnings the company distributes as dividends. A lower ratio suggests the company retains a significant part of its earnings, providing funds for future growth and unexpected downturns. As of June 30, 2023, PT Astra Agro Lestari Tbk's dividend payout ratio is 0.60. The company's profitability rank of 7 out of 10 suggests good profitability prospects, and the company has reported positive net income each year over the past decade, further solidifying its high profitability.
PT Astra Agro Lestari Tbk's Growth Metrics
A company must demonstrate robust growth metrics to ensure the sustainability of dividends. PT Astra Agro Lestari Tbk's growth rank of 7 out of 10 suggests a good growth trajectory relative to its competitors. The company's strong revenue per share and 3-year revenue growth rate indicate a robust revenue model. PT Astra Agro Lestari Tbk's revenue has increased by approximately 7.70% per year on average, outperforming approximately 53.59% 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, PT Astra Agro Lestari Tbk's earnings increased by approximately 101.50% per year on average, outperforming approximately 94.44% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 4.90% outperforms approximately 47.12% of global competitors.
Wrapping Up
In conclusion, PT Astra Agro Lestari Tbk's consistent dividend payments, impressive growth rate, low payout ratio, high profitability, and robust growth metrics make it an attractive option for investors seeking regular income. The company's commendable performance in maintaining a balanced payout ratio and profitability, along with its promising growth prospects, suggests a sustainable dividend profile. However, investors should also consider the anticipated decrease in dividend payments over the next 12 months. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
