Understanding the Dividend Dynamics of Thai Beverage PLC
Thai Beverage PLC(TBVPF, Financial) recently announced a dividend of $0.45 per share, payable on 2024-02-28, with the ex-dividend date set for 2024-02-06. 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 Thai Beverage PLC's dividend performance and assess its sustainability.
What Does Thai Beverage PLC Do?
Thai Beverage PLC is a Thailand-based company engaged in producing and distributing alcoholic and non-alcoholic beverages and food. The company's operating segment includes Spirits; Beer; Non-alcoholic beverages, and Food. It generates maximum revenue from the Beer segment. The Spirits segment is engaged in the production and sales of branded spirits products and soda. Its Beer segment is engaged in the production and sales of raw materials and branded beer products. Geographically, it derives a majority of its revenue from Thailand and also has a presence in the Socialist Republic of Vietnam and Overseas.
A Glimpse at Thai Beverage PLC's Dividend History
Thai Beverage PLC 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 Thai Beverage PLC's Dividend Yield and Growth
As of today, Thai Beverage PLC currently has a 12-month trailing dividend yield of 4.57% and a 12-month forward dividend yield of 4.46%. This suggests an expectation of decreased dividend payments over the next 12 months.
Thai Beverage PLC's dividend yield of 4.57% is near a 10-year high and outperforms 74.83% of global competitors in the Beverages - Alcoholic industry, suggesting that the company's dividend yield stands out as an attractive proposition for income investors.
Over the past three years, Thai Beverage PLC's annual dividend growth rate was 5.00%. Extended to a five-year horizon, this rate decreased to -1.60% per year. And over the past decade, Thai Beverage PLC's annual dividends per share growth rate stands at 2.40%.
Based on Thai Beverage PLC's dividend yield and five-year growth rate, the 5-year yield on cost of Thai Beverage PLC stock as of today is approximately 4.22%.
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 2023-09-30, Thai Beverage PLC's dividend payout ratio is 0.53.
Thai Beverage PLC's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Thai Beverage PLC's profitability 7 out of 10 as of 2023-09-30, suggesting good profitability prospects. 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. Thai Beverage PLC'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 Thai Beverage PLC's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Thai Beverage PLC's revenue has increased by approximately -1.30% per year on average, a rate that underperforms approximately 77.39% 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, Thai Beverage PLC's earnings increased by approximately 0.80% per year on average, a rate that underperforms approximately 66.86% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 3.50%, which underperforms approximately 60% of global competitors.
Next Steps
In conclusion, Thai Beverage PLC's upcoming dividend payment, consistent dividend history, and high yield make it an appealing stock for income-focused investors. However, the slight decrease in the forward dividend yield hints at potential adjustments in future payouts. The company's moderate payout ratio and strong profitability rank support the sustainability of the dividend, but the underperformance in growth metrics compared to industry peers may raise concerns about long-term dividend growth. As investors consider Thai Beverage PLC as part of their portfolios, it is crucial to weigh the enticing dividend yield against the potential risks highlighted by revenue and earnings growth rates. For those seeking to diversify their income-generating investments, 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.
