An In-Depth Look at BKRKY's Dividend Sustainability and Growth Prospects
PT Bank Rakyat Indonesia (Persero) Tbk (BKRKY, Financial) recently announced a dividend of $0.27 per share, payable on 2024-02-02, with the ex-dividend date set for 2023-12-29. 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 PT Bank Rakyat Indonesia (Persero) Tbk's dividend performance and assess its sustainability.
What Does PT Bank Rakyat Indonesia (Persero) Tbk Do?
PT Bank Rakyat Indonesia (Persero) Tbk is Indonesia's oldest commercial bank, operating primarily within the country's borders, with some exposure to North Asia. BRI focuses on serving micro, small, and medium enterprises (MSMEs) with tailored banking services. The company integrates financial technology into its offerings to enhance customer accessibility. Its core services include deposit collection, loan disbursement, promissory notes, loan agreements, and asset collateralization. BRI provides working capital loans, corporate and commercial loans, and consumer mortgages.
A Glimpse at PT Bank Rakyat Indonesia (Persero) Tbk's Dividend History
PT Bank Rakyat Indonesia (Persero) Tbk has maintained a consistent dividend payment record since 2009, with bi-annual distributions. The chart below illustrates the historical trends of the company's annual Dividends Per Share.
Breaking Down PT Bank Rakyat Indonesia (Persero) Tbk's Dividend Yield and Growth
As of today, PT Bank Rakyat Indonesia (Persero) Tbk boasts a trailing dividend yield of 5.31% and a forward dividend yield of 6.84%. This indicates an anticipated increase in dividend payments over the next 12 months. Over the past three, five, and ten years, the annual dividend growth rates have been 24.40%, 16.90%, and 20.60%, respectively, showcasing a healthy growth trend. The 5-year yield on cost for PT Bank Rakyat Indonesia (Persero) Tbk stock is approximately 11.59%.
The Sustainability Question: Payout Ratio and Profitability
PT Bank Rakyat Indonesia (Persero) Tbk's dividend sustainability can be gauged by examining its dividend payout ratio, which currently stands at 0.79. This ratio indicates the company's practice of distributing a substantial portion of its earnings as dividends, potentially calling into question the sustainability of future payments. The company's profitability rank of 6 out of 10, combined with a consistent record of positive net income, however, suggests fair profitability and financial health.
Growth Metrics: The Future Outlook
PT Bank Rakyat Indonesia (Persero) Tbk's growth prospects are reflected in its growth rank of 6 out of 10. The company's revenue and earnings growth rates, which outperform a significant portion of global competitors, indicate a strong potential for continued dividend support. The 5-year EBITDA growth rate, despite being negative, still positions the company ahead of many competitors.
Final Thoughts on PT Bank Rakyat Indonesia (Persero) Tbk's Dividend Outlook
In conclusion, PT Bank Rakyat Indonesia (Persero) Tbk presents a compelling case for dividend investors with its notable yield and growth rates. However, the relatively high payout ratio warrants careful monitoring for sustainability. The company's solid profitability and growth metrics offer reassurance for the future. Value investors may find PT Bank Rakyat Indonesia (Persero) Tbk's dividend strategy aligned with their long-term investment goals. For further investment research, GuruFocus Premium users can explore high-dividend yield opportunities 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.
