Suria Capital Holdings Berhad (KLSE:SURIA) Has Announced That Its Dividend Will Be Reduced To MYR0.015

Suria Capital Holdings Berhad (KLSE:SURIA) has announced a reduction in its dividend payment from last year, dropping to MYR0.015 on July 26. This will result in a dividend yield of 1.8%, which is lower than the industry average.

Prior to this adjustment, the company’s dividend was well covered by both cash flow and earnings, indicating a focus on retaining earnings for business growth. Looking ahead, earnings per share are expected to increase by 54.7% in the next year. If the dividend continues on its current path, the payout ratio could reach 19% by next year, which is considered sustainable.

While Suria Capital Holdings Berhad has a consistent dividend track record, there have been cuts in the past. The dividend has decreased from MYR0.0513 in 2014 to MYR0.035 recently, showing an annual decline of about 3.8%. Declining earnings per share over the last five years at a rate of 6.6% per year raise doubts about potential dividend growth.

Overall, the dividend appears to have been on the higher side, leading to the recent reduction. While the stability of payments is not strong and growth potential is limited, the dividend remains well covered by cash flows in the short term. Investors seeking income investments may want to explore other options.

Stable dividend policies typically attract more investor interest compared to inconsistent ones. It is important to consider various factors beyond dividend payments when evaluating a company. Additionally, it is essential to conduct thorough research before making investment decisions.