Yahoo Finance Keppel Ltd's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance of Keppel Ltd
Keppel Ltd (KPELY) recently announced a dividend of $0.28 per share, payable on 2024-05-15, with the ex-dividend date set for 2024-04-25. 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 Keppel Ltd's dividend performance and assess its sustainability.
What Does Keppel Ltd Do?
Warning! GuruFocus has detected 10 Warning Signs with KPELY.
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Singapore-based Keppel is a conglomerate with well-diversified businesses. The key operating segments are infrastructure (provides energy and environmental solutions), real estate (includes property development and investment, as well as master development) and telecom (includes telecom services and operation of data centers). In 2023, the infrastructure segment was the largest earnings contributor.
A Glimpse at Keppel Ltd's Dividend History
Keppel Ltd has maintained a consistent dividend payment record since 2006. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Keppel Ltd's Dividend Yield and Growth
As of today, Keppel Ltd currently has a 12-month trailing dividend yield of 4.76% and a 12-month forward dividend yield of 4.88%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Keppel Ltd's annual dividend growth rate was 30.10%. Extended to a five-year horizon, this rate decreased to 9.50% per year. And over the past decade, Keppel Ltd's annual dividends per share growth rate stands at -4.60%.
Based on Keppel Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Keppel Ltd stock as of today is approximately 7.49%.
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, Keppel Ltd's dividend payout ratio is 0.67.
Keppel Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Keppel Ltd's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 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. Keppel Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Keppel Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Keppel Ltd's revenue has increased by approximately 2.40% per year on average, a rate that underperforms approximately 61.7% of global competitors.
Engaging Conclusion
In conclusion, Keppel Ltd's upcoming dividend, alongside its historical dividend payments, growth rates, payout ratio, profitability, and growth metrics, presents a comprehensive picture for value investors. While the dividend growth rate and yield on cost are promising, the sustainability of these dividends is backed by a moderate payout ratio and a good profitability rank. However, investors should consider the underperforming revenue growth in comparison to global competitors. Given these insights, value investors might ponder: Is Keppel Ltd's dividend strategy aligned with their long-term investment goals? 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.
This article first appeared on GuruFocus.
