Eco World Development Group Berhad (KLSE:ECOWLD) Will Pay A Dividend Of MYR0.02

Eco World Development Group Berhad (KLSE:ECOWLD) has announced that it will pay a dividend of MYR0.02 per share on the 12th of January. This means that the annual payment will be 3.8% of the current stock price, which is in line with the average for the industry.

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Eco World Development Group Berhad's Payment Could Potentially Have Solid Earnings Coverage

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. The last dividend was quite easily covered by Eco World Development Group Berhad's earnings. This indicates that quite a large proportion of earnings is being invested back into the business.

The next year is set to see EPS grow by 31.8%. If the dividend continues along recent trends, we estimate the payout ratio will be 45%, which is in the range that makes us comfortable with the sustainability of the dividend.

Check out our latest analysis for Eco World Development Group Berhad

Eco World Development Group Berhad Is Still Building Its Track Record

Eco World Development Group Berhad's dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. The dividend has gone from an annual total of MYR0.02 in 2020 to the most recent total annual payment of MYR0.08. This means that it has been growing its distributions at 32% per annum over that time. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Eco World Development Group Berhad has impressed us by growing EPS at 21% per year over the past five years. The company doesn't have any problems growing, despite returning a lot of capital to shareholders, which is a very nice combination for a dividend stock to have.

Eco World Development Group Berhad Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Eco World Development Group Berhad might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 11 analysts we track are forecasting for Eco World Development Group Berhad for free with public analyst estimates for the company. Is Eco World Development Group Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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