In This Article:
Assessing the Upcoming Dividend and Historical Performance of Keppel Ltd
Keppel Ltd (KPELY) recently announced a dividend of $0.28 per share, payable on 2024-05-15, with the ex-dividend date set for 2024-04-25. 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 Keppel Ltd's dividend performance and assess its sustainability.
What Does Keppel Ltd Do?
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Singapore-based Keppel is a conglomerate with well-diversified businesses. The key operating segments are infrastructure (provides energy and environmental solutions), real estate (includes property development and investment, as well as master development) and telecom (includes telecom services and operation of data centers). In 2023, the infrastructure segment was the largest earnings contributor.
A Glimpse at Keppel Ltd's Dividend History
Keppel Ltd 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 Keppel Ltd's Dividend Yield and Growth
As of today, Keppel Ltd currently has a 12-month trailing dividend yield of 4.76% and a 12-month forward dividend yield of 4.88%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Keppel Ltd's annual dividend growth rate was 30.10%. Extended to a five-year horizon, this rate decreased to 9.50% per year. And over the past decade, Keppel Ltd's annual dividends per share growth rate stands at -4.60%.
Based on Keppel Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Keppel Ltd stock as of today is approximately 7.49%.
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 2023-12-31, Keppel Ltd's dividend payout ratio is 0.67.
Keppel Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Keppel Ltd's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years.