Assessing the Sustainability and Growth of PT Bank Central Asia Tbk's Dividends
PT Bank Central Asia Tbk (PBCRF, Financial) recently announced a dividend of $227.5 per share, payable on 2024-04-04, with the ex-dividend date set for 2024-03-25. 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 Central Asia Tbk's dividend performance and assess its sustainability.
What Does PT Bank Central Asia Tbk Do?
PT Bank Central Asia Tbk is an Indonesian based banking service provider operating as a Sharia bank. The bank provides various financial solutions to its customers through its inter-branch links, ATM network, and electronic banking services. It offers loans, accepts deposits, mutual fund investments, fixed income products, and credit facilities. Its segments are Loans; Treasury and Others. The customer base mainly includes individuals, small and medium businesses, and corporations. Its business segment is classified into five geographic areas, which are Sumatera, Java, Kalimantan, East Indonesia, and overseas operation.
A Glimpse at PT Bank Central Asia Tbk's Dividend History
PT Bank Central Asia Tbk has maintained a consistent dividend payment record since 2009. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down PT Bank Central Asia Tbk's Dividend Yield and Growth
As of today, PT Bank Central Asia Tbk currently has a 12-month trailing dividend yield of 2.23% and a 12-month forward dividend yield of 2.70%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, PT Bank Central Asia Tbk's annual dividend growth rate was 24.30%. Extended to a five-year horizon, this rate increased to 30.80% per year. And over the past decade, PT Bank Central Asia Tbk's annual dividends per share growth rate stands at an impressive 25.60%.
Based on PT Bank Central Asia Tbk's dividend yield and five-year growth rate, the 5-year yield on cost of PT Bank Central Asia Tbk stock as of today is approximately 8.54%.
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 Central Asia Tbk's dividend payout ratio is 0.56.
PT Bank Central Asia Tbk's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks PT Bank Central Asia 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 Central Asia 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 Central Asia Tbk's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. PT Bank Central Asia Tbk's revenue has increased by approximately 9.90% per year on average, a rate that outperforms approximately 64.22% 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 Central Asia Tbk's earnings increased by approximately 21.50% per year on average, a rate that outperforms approximately 68.39% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 13.30%, which outperforms approximately 68.64% of global competitors.
Next Steps
In conclusion, PT Bank Central Asia Tbk's dividend payments and growth rate, combined with a prudent payout ratio and solid profitability, paint a picture of a company committed to returning value to its shareholders while maintaining a focus on sustainable growth. With robust growth metrics indicating a healthy future outlook, PT Bank Central Asia Tbk stands out as a potentially attractive choice for value investors seeking dividend income. As always, investors should conduct their due diligence and consider the broader economic and industry trends when making investment decisions. 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.
