Assessing the Sustainability and Growth of Genting Bhd's Dividends
Genting Bhd (GEBHY, Financial) recently announced a dividend of $0.1 per share, payable on an undetermined future date, 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 Bhd's dividend performance and assess its sustainability.
What Does Genting Bhd Do?
Genting Bhd is a diversified holdings company primarily operating in the resorts and casinos industry. The company's primary business segment is Leisure & Hospitality, but the business has several smaller segments: Plantation, Power, Property, and Oil & Gas. The Leisure & Hospitality segment operates numerous resorts worldwide, many of which have casinos, theme parks, concerts, restaurants, and retail shopping locations. Additionally, the company has diversified segments, which control farmland, oil and gas, and real estate. The company generates the vast majority of its revenue from Malaysia and Singapore.
A Glimpse at Genting Bhd's Dividend History
Genting Bhd has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annual basis.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Genting Bhd's Dividend Yield and Growth
As of today, Genting Bhd currently has a 12-month trailing dividend yield of 3.01% and a 12-month forward dividend yield of 2.88%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Genting Bhd's annual dividend growth rate was 12.90%. Based on Genting Bhd's dividend yield and five-year growth rate, the 5-year yield on cost of Genting Bhd stock as of today is approximately 3.01%.
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 Bhd's dividend payout ratio is 0.60.
Genting Bhd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Genting Bhd's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported net profit in 7 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 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 Bhd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Genting Bhd's revenue has increased by approximately 1.20% per year on average, a rate that underperforms approximately 53.13% 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, Genting Bhd's earnings decreased by approximately -58.60% per year on average, a rate that underperforms approximately 93.35% of global competitors.
Concluding Thoughts on Genting Bhd's Dividend Outlook
While Genting Bhd (GEBHY, Financial) presents a respectable dividend yield and a history of consistent payments, the projected decrease in dividend payments and underperforming growth rates in earnings and revenue may raise concerns for long-term sustainability. With a fair profitability rank and a moderate growth outlook, investors should closely monitor the company's ability to manage payout ratios and maintain profitability. As Genting Bhd navigates the challenges of the leisure and hospitality industry, value investors will need to weigh the potential risks against the benefits of holding this dividend-paying stock.
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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.
