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Mr D.I.Y. Group (M) Berhad (KLSE:MRDIY) Is Paying Out A Dividend Of MYR0.01

Mr D.I.Y. Group (M) Berhad (KLSE:MRDIY) will be paying a dividend of MYR0.01 on the 21st of June, with a dividend yield of 1.8%. This yield is slightly lower compared to other companies in the industry.

Before this announcement, Mr D.I.Y. Group (M) Berhad’s dividend was well covered by both cash flow and earnings, indicating that a significant portion of earnings are being retained for business growth. The expected EPS growth for the next year is 36.1%, with a projected payout ratio of 22%, which is within a sustainable range for the dividend.

While the dividend payments have shown some instability in the past, with fluctuations from MYR0.0195 in 2020 to MYR0.032 in the most recent annual payment, the company has managed to grow distributions at a rapid rate despite previous dividend cuts. However, caution is advised as companies that have cut dividends once may be prone to future cuts.

Despite the past fluctuations in dividends, growing earnings per share could help mitigate potential issues. Mr D.I.Y. Group (M) Berhad has seen a decline in earnings per share by 80% annually over the past five years, which could impact dividend sustainability. However, earnings are expected to rise in the next 12 months, providing a more positive outlook.

Overall, while a consistent dividend payment is positive, the current level of payment may not be sustainable in the long term. Investors should be cautious and consider other factors before investing in the stock. It’s important to note that Simply Wall St provides commentary based on historical data and analyst forecasts, and does not constitute financial advice.

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