In the wake of recent positive economic indicators and a solid recovery in global markets, investors are increasingly optimistic about achieving a "soft landing" for the economy. Amidst this backdrop, dividend stocks have emerged as an attractive option for those seeking steady income and potential growth. When considering dividend stocks like Sansiri and others, it's essential to focus on companies with strong fundamentals and consistent payout histories, especially given the current market's emphasis on resilience and stability.
Overview: Sansiri Public Company Limited, along with its subsidiaries, operates in the property development sector in Thailand and has a market cap of THB29.85 billion.
Operations: Sansiri Public Company Limited generates revenue from several segments, including Real Estate (THB35.77 billion), Hotel Business (THB676 million), Hotel Management (THB574 million), and Building Management, Project Management, and Real Estate Brokerage (THB2.15 billion).
Dividend Yield: 8.1%
Sansiri recently announced an interim cash dividend of THB 0.07 per share, but its dividends are not well covered by free cash flows and have been volatile over the past decade. The company's recent earnings report showed a decline in net income to THB 1.39 billion for Q2 2024, compared to THB 1.62 billion a year ago. Despite trading at a good value with a P/E ratio of 5.7x, shareholders experienced dilution last year, raising concerns about dividend sustainability and reliability.
Overview: SiS Distribution (Thailand) Public Company Limited, with a market cap of THB8.40 billion, operates in the distribution of computer components, smartphones, and office automation equipment in Thailand.
Operations: SiS Distribution (Thailand) Public Company Limited generates revenue from various segments, including Phones (THB5.12 billion), Consumer Products (THB8.11 billion), Value Add Products (THB5.20 billion), and Commercial Products (THB6.26 billion).
Dividend Yield: 4.4%
SiS Distribution (Thailand) has demonstrated consistent dividend growth over the past decade, with a current yield of 4.38%. Dividends are well-covered by both earnings (53.8% payout ratio) and cash flows (15.7% cash payout ratio), indicating sustainability. Despite a recent decline in quarterly revenue to THB 6,721.23 million from THB 7,423.53 million, net income grew for the six months ended June 30, 2024, to THB 346.41 million from THB 308.85 million year-on-year.
Overview: Sesoda Corporation manufactures and markets sulfate of potash (SOP) in Taiwan, with a market cap of NT$9.66 billion.
Operations: Sesoda Corporation generates revenue from the production and sale of sulfate of potash (SOP) in Taiwan.
Dividend Yield: 3.5%
Sesoda's dividends are covered by earnings (54% payout ratio) and cash flows (30.2% cash payout ratio). However, the dividend track record has been volatile over the past decade. Recent earnings reports show a significant turnaround with Q2 net income of TWD 289.1 million, compared to a loss last year, suggesting improved financial health that could support future dividends. Despite these positives, the dividend yield of 3.52% is below the top quartile in Taiwan's market.
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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.
Companies discussed in this article include SET:SIRI SET:SIS and TWSE:1708.
