Malaysia Smelting Corporation Berhad (KLSE:MSC) Will Pay A RM00.07 Dividend In Three Days

Malaysia Smelting Corporation Berhad (KLSE:MSC) is set to trade ex-dividend in the next three days. The ex-dividend date is typically one business day before the record date, which is the deadline to be listed as a shareholder on the company’s books to receive the dividend. To receive the dividend, one must purchase Malaysia Smelting Corporation Berhad’s shares before June 13th, as the company will pay out RM00.07 per share on June 28th.

Last year, the company paid a total of RM0.14 to shareholders, and looking at the last 12 months of distributions, Malaysia Smelting Corporation Berhad has a trailing yield of about 4.9% on its current stock price of RM02.83. It is important to assess whether the company can afford its dividend and if the dividend has room to grow.

Paying out 87% of its earnings as dividends last year, Malaysia Smelting Corporation Berhad’s dividend may become unsustainable if earnings decline. However, dividends consumed 61% of the company’s free cash flow, which is within a normal range for most dividend-paying organizations. This indicates that the dividend is covered by both profit and cash flow, suggesting sustainability, barring a significant drop in earnings.

Earnings per share have been growing at 14% annually for the past five years, a positive sign for dividend prospects. Over the last seven years, Malaysia Smelting Corporation Berhad has increased its dividend by approximately 32% annually on average. With both per-share earnings and dividends growing rapidly, the company shows promise in terms of dividend growth.

While Malaysia Smelting Corporation Berhad presents an attractive dividend, it is important to consider the risks involved. It is advised to research the company’s reinvestment in growth projects that could potentially boost earnings and dividends in the future. Overall, while the company’s earnings per share are growing, the high payout ratio of 87% of earnings and 61% of cash flow raises some concerns about its dividend prospects.