Assessing the Sustainability and Growth of PT Bank Mandiri (Persero) Tbk's Dividends
PT Bank Mandiri (Persero) Tbk(PPERY, Financial) recently announced a dividend of $0.91 per share, payable on 2024-04-12, with the ex-dividend date set for 2024-03-22. 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 Mandiri (Persero) Tbk's dividend performance and assess its sustainability.
What Does PT Bank Mandiri (Persero) Tbk Do?
PT Bank Mandiri (Persero) Tbk is a full-service bank principally operating in the Indonesian archipelago. The national government of Indonesia owns well over half of the bank's outstanding shares. Its wide range of products and services includes deposit collection, loans, promissory note issuance, guarantee services, wholesale banking, custodian banking, asset and wealth management, factoring and credit card services, and Islamic banking. The bank's strategy emphasizes a cross-selling culture and increased regionalization, expertise-oriented solutions, and ease of access for its micro, small, and midsize enterprise customers. Its loan portfolio is diversified, mostly in industrials, restaurants and hospitality, and the transportation and storage industries.
A Glimpse at PT Bank Mandiri (Persero) Tbk's Dividend History
PT Bank Mandiri (Persero) Tbk has maintained a consistent dividend payment record since 2009. 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 Mandiri (Persero) Tbk's Dividend Yield and Growth
As of today, PT Bank Mandiri (Persero) Tbk currently has a 12-month trailing dividend yield of 3.94% and a 12-month forward dividend yield of 5.03%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, PT Bank Mandiri (Persero) Tbk's annual dividend growth rate was 14.40%. Extended to a five-year horizon, this rate increased to 17.40% per year. And over the past decade, PT Bank Mandiri (Persero) Tbk's annual dividends per share growth rate stands at an impressive 17.40%.
Based on PT Bank Mandiri (Persero) Tbk's dividend yield and five-year growth rate, the 5-year yield on cost of PT Bank Mandiri (Persero) Tbk stock as of today is approximately 8.79%.
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 Mandiri (Persero) Tbk's dividend payout ratio is 0.44.
PT Bank Mandiri (Persero) Tbk's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks PT Bank Mandiri (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 of 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 Mandiri (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 Mandiri (Persero) Tbk's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. PT Bank Mandiri (Persero) Tbk's revenue has increased by approximately 12.20% per year on average, a rate that outperforms approximately 71.9% 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 Mandiri (Persero) Tbk's earnings increased by approximately 48.50% per year on average, a rate that outperforms approximately 90.8% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 17.60%, which outperforms approximately 78.75% of global competitors.
Next Steps
Considering PT Bank Mandiri (Persero) Tbk's consistent dividend payments, robust dividend growth rate, reasonable payout ratio, and solid profitability and growth metrics, the company presents a potentially attractive proposition for value investors seeking dividend income. As with any investment, it is crucial to conduct thorough research and consider the broader economic context and individual investment goals. For those interested in exploring further, 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.
