GuocoLand (Malaysia) Berhad (KLSE:GUOCO) Has Announced A Dividend Of MYR0.02

GuocoLand (Malaysia) Berhad (KLSE:GUOCO) will pay a dividend of MYR0.02 on the 15th of November. The dividend yield is 2.7% based on this payment, which is a little bit low compared to the other companies in the industry.

Check out our latest analysis for GuocoLand (Malaysia) Berhad

GuocoLand (Malaysia) Berhad's Earnings Easily Cover The Distributions

If it is predictable over a long period, even low dividend yields can be attractive. However, GuocoLand (Malaysia) Berhad's earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.

If the trend of the last few years continues, EPS will grow by 10.4% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio will be 35%, which is in the range that makes us comfortable with the sustainability of the dividend.

Dividend Volatility

Although the company has a long dividend history, it has been cut at least once in the last 10 years. The payments haven't really changed that much since 10 years ago. Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent.

The Dividend Looks Likely To Grow

Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. We are encouraged to see that GuocoLand (Malaysia) Berhad has grown earnings per share at 10% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for GuocoLand (Malaysia) Berhad's prospects of growing its dividend payments in the future.

We Really Like GuocoLand (Malaysia) Berhad's Dividend

Overall, we like to see the dividend staying consistent, and we think GuocoLand (Malaysia) 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. All of these factors considered, we think this has solid potential as a dividend stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. As an example, we've identified 1 warning sign for GuocoLand (Malaysia) Berhad that you should be aware of before investing. Is GuocoLand (Malaysia) Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.