Able Global Berhad (KLSE:ABLEGLOB) Will Pay A Dividend Of MYR0.02

Able Global Berhad's (KLSE:ABLEGLOB) investors are due to receive a payment of MYR0.02 per share on 30th of December. This means the annual payment is 4.1% of the current stock price, which is above the average for the industry.

View our latest analysis for Able Global Berhad

Able Global Berhad's Projected Earnings Seem Likely To Cover Future Distributions

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, prior to this announcement, Able Global Berhad's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business.

The next year is set to see EPS grow by 5.4%. Assuming the dividend continues along recent trends, we think the payout ratio could be 38% by next year, which is in a pretty sustainable range.

Able Global Berhad Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2014, the dividend has gone from MYR0.015 total annually to MYR0.08. This implies that the company grew its distributions at a yearly rate of about 18% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

We Could See Able Global Berhad's Dividend Growing

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Able Global Berhad has grown earnings per share at 7.6% per year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.

We Really Like Able Global Berhad's Dividend

Overall, we like to see the dividend staying consistent, and we think Able Global Berhad might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 Able Global Berhad analysts we track are forecasting continued growth with our free report on analyst estimates for the company. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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