Dividend Analysis: Kasikornbank Public Co Ltd's Upcoming Dividend and Its Sustainability
A comprehensive look at Kasikornbank Public Co Ltd's dividend history, yield, growth, and future prospects
Kasikornbank Public Co Ltd (KPCPY) recently announced a dividend of $0.06 per share, payable on 2023-10-16, with the ex-dividend date set for 2023-09-12. As investors eagerly anticipate this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's deep dive into Kasikornbank Public Co Ltd's dividend performance and assess its sustainability.
What Does Kasikornbank Public Co Ltd Do?
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Kasikornbank Public Co Ltd is a commercial bank operating in Thailand. The corporate business' customers include public and private companies, government-backed enterprises or agencies, and financial institutions. The corporate business provides a variety of financial products and services such as loans, working capital, cash management, and value chain solutions. The retail business focuses on individual customers and offers loans and deposits, debit and credit cards, financial planning, and transactional banking services. The treasury and capital markets business includes funding, risk management, and foreign currency exchange services. The Muang Thai Group Holding business offers insurance and brokerage services.
A Glimpse at Kasikornbank Public Co Ltd's Dividend History
Kasikornbank Public Co Ltd has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kasikornbank Public Co Ltd's Dividend Yield and Growth
As of today, Kasikornbank Public Co Ltd currently has a 12-month trailing dividend yield of 3.19% and a 12-month forward dividend yield of 3.21%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Kasikornbank Public Co Ltd's annual dividend growth rate was -6.70%. Extended to a five-year horizon, this rate increased to -5.00% per year. Over the past decade, Kasikornbank Public Co Ltd's annual dividends per share growth rate stands at 1.90%.
Based on Kasikornbank Public Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Kasikornbank Public Co Ltd stock as of today is approximately 2.47%.
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 2023-06-30, Kasikornbank Public Co Ltd's dividend payout ratio is 0.27.
Kasikornbank Public Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kasikornbank Public Co Ltd's profitability 5 out of 10 as of 2023-06-30, 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. Kasikornbank Public Co Ltd's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Kasikornbank Public Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kasikornbank Public Co Ltd's revenue has increased by approximately 2.30% per year on average, a rate that underperforms than approximately 74.48% 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, Kasikornbank Public Co Ltd's earnings increased by approximately -3.00% per year on average, a rate that underperforms than approximately 82.55% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -0.50%, underperforms than approximately 79.5% of global competitors.
Concluding Thoughts
While Kasikornbank Public Co Ltd has demonstrated a consistent dividend payment record, its growth rates and payout ratio suggest caution. The company's profitability rank indicates fair profitability, but its growth rank and various growth rates show room for improvement. Investors should carefully consider these factors when making decisions about Kasikornbank Public Co Ltd's dividends. Will the company be able to maintain its dividend payments in the long run? Only time will tell.
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This article first appeared on GuruFocus.
