Thai Beverage PLC's Dividend Analysis

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GuruFocus Research

Mon, May 27, 2024, 5:02 AM 4 min read

Exploring the Upcoming Dividend Payment and Company Fundamentals

Thai Beverage PLC (TBVPF) recently announced a dividend of $0.15 per share, payable on 2024-06-12, with the ex-dividend date set for 2024-05-28. 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?

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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 4.79% and a 12-month forward dividend yield of 4.71%. This suggests an expectation of decrease dividend payments over the next 12 months. Over the past three years, Thai Beverage PLC's annual dividend growth rate was 6.60%. Extended to a five-year horizon, this rate decreased to -1.00% per year. And over the past decade, Thai Beverage PLC's annual dividends per share growth rate stands at 2.70%.

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 4.56%.

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 2024-03-31, Thai Beverage PLC's dividend payout ratio is 0.81, which may suggest that the company's dividend may not be sustainable.

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 2024-03-31, 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 than approximately 84.8% 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 than approximately 69.36% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 3.50%, which underperforms than approximately 59.84% of global competitors.

Conclusion

While Thai Beverage PLC shows a promising dividend yield and a consistent payout history, the sustainability of its dividends could be challenged by its payout ratio and mixed growth metrics. Investors should carefully consider these factors along with the company's profitability and market position when assessing the long-term viability of its dividends. For those looking to explore further, 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.

This article first appeared on GuruFocus.

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