Understanding the Dividend Prospects of PTBRY
PT Bank Negara Indonesia (Persero) Tbk (PTBRY, Financial) recently announced a dividend of $0.89 per share, payable on 2024-04-17, with the ex-dividend date set for 2024-03-15. 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 Negara Indonesia (Persero) Tbk's dividend performance and assess its sustainability.
What Does PT Bank Negara Indonesia (Persero) Tbk Do?
PT Bank Negara Indonesia (Persero) Tbk is an Indonesian state-owned bank, with the government holding just over half of the bank's outstanding shares. BNI's main banking activities include deposit-taking, providing credit, issuing debt instruments, money transfer services, secondary market services, wholesale banking, custody banking, capital investment, and other services. Its business divisions include Corporate and International Banking; Institutional Banking; Enterprises and Commercial Banking; Consumer Banking and Treasury.
A Glimpse at PT Bank Negara Indonesia (Persero) Tbk's Dividend History
PT Bank Negara Indonesia (Persero) Tbk has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down PT Bank Negara Indonesia (Persero) Tbk's Dividend Yield and Growth
As of today, PT Bank Negara Indonesia (Persero) Tbk currently has a 12-month trailing dividend yield of 3.53% and a 12-month forward dividend yield of 4.75%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, PT Bank Negara Indonesia (Persero) Tbk's annual dividend growth rate was 24.00%. Extended to a five-year horizon, this rate decreased to -1.00% per year. And over the past decade, PT Bank Negara Indonesia (Persero) Tbk's annual dividends per share growth rate stands at 3.40%.
Based on PT Bank Negara Indonesia (Persero) Tbk's dividend yield and five-year growth rate, the 5-year yield on cost of PT Bank Negara Indonesia (Persero) Tbk stock as of today is approximately 3.36%.
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 2023-12-31, PT Bank Negara Indonesia (Persero) Tbk's dividend payout ratio is 0.45.
PT Bank Negara Indonesia (Persero) Tbk's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks PT Bank Negara Indonesia (Persero) Tbk's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. PT Bank Negara Indonesia (Persero) Tbk'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 PT Bank Negara Indonesia (Persero) Tbk's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. PT Bank Negara Indonesia (Persero) Tbk's revenue has increased by approximately 4.30% per year on average, a rate that underperforms than approximately 64.58% 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 Bank Negara Indonesia (Persero) Tbk's earnings increased by approximately 94.60% per year on average, a rate that underperforms than approximately 3.47% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 14.90%, which underperforms than approximately 30.13% of global competitors.
Next Steps
In conclusion, PT Bank Negara Indonesia (Persero) Tbk's recent dividend announcement is a positive signal for investors seeking income. The company's consistent dividend history, paired with a reasonable payout ratio and fair profitability, suggests that the dividend is sustainable in the near term. However, investors should also consider the company's growth metrics, which indicate a fair growth outlook, to assess the long-term sustainability of dividend payments. PT Bank Negara Indonesia (Persero) Tbk's dividend growth rate, payout ratio, profitability, and growth metrics collectively provide a comprehensive picture of its dividend profile. Investors looking for high-dividend yield opportunities can utilize tools like the High Dividend Yield Screener available to GuruFocus Premium users to find similar investment options.
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.
