Exploring the Dividend Performance and Sustainability of PT Adaro Energy Indonesia Tbk (ADOOY, Financial)
PT Adaro Energy Indonesia Tbk (ADOOY) recently announced a dividend of $0.64 per share, payable on 2024-06-20, with the ex-dividend date set for 2024-06-10. As investors look forward to this upcoming payment, attention is also drawn to the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into PT Adaro Energy Indonesia Tbk's dividend performance and evaluate its sustainability.
What Does PT Adaro Energy Indonesia Tbk Do?
PT Adaro Energy Indonesia Tbk is an integrated coal mining and energy company. The company primarily produces thermal coal marketed under the brand name Envirocoal. It also produces hard-coking coal. Its main customers include blue-chip power utilities companies. Beyond its core mining business, PT Adaro Energy Indonesia Tbk offers a range of services including barging, ship-loading, dredging, port services, and power generation, among others. Its primary revenue comes from its coal mining and trading operations, supported by mining services, logistics, and other segments.
A Glimpse at PT Adaro Energy Indonesia Tbk's Dividend History
PT Adaro Energy Indonesia Tbk has maintained a consistent dividend payment record since 2010, with dividends currently distributed bi-annually. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down PT Adaro Energy Indonesia Tbk's Dividend Yield and Growth
Currently, PT Adaro Energy Indonesia Tbk boasts a 12-month trailing dividend yield of 16.05% and a forward dividend yield of 14.27%, indicating an expected decrease in dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 118.10%, which slowed to 43.80% per year over five years, and a decade-long growth rate of 32.30%. The 5-year yield on cost for PT Adaro Energy Indonesia Tbk stock is approximately 98.69% as of today.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of dividends is often gauged by the dividend payout ratio, which for PT Adaro Energy Indonesia Tbk stands at 1.40 as of 2024-03-31. This low ratio suggests that the company retains a significant portion of its earnings, which supports future growth and stability. The company's profitability rank is 9 out of 10, indicating strong earnings relative to peers, with consistent positive net income over the past decade.
Growth Metrics: The Future Outlook
PT Adaro Energy Indonesia Tbk's growth rank of 9 out of 10 underscores a robust growth trajectory. The company's revenue per share and 3-year revenue growth rate of 46.20% per year outperform approximately 76.86% of global competitors. Additionally, its 3-year EPS growth rate of 106.20% per year and 5-year EBITDA growth rate of 49.30% further highlight its strong performance relative to the industry.
Concluding Thoughts on PT Adaro Energy Indonesia Tbk's Dividend Sustainability
Considering PT Adaro Energy Indonesia Tbk's consistent dividend payments, robust growth metrics, and strong profitability, the company appears well-positioned to sustain its dividend distributions. Investors should continue to monitor these factors to gauge future performance. For those seeking high-dividend yield stocks, consider using the High Dividend Yield Screener available to GuruFocus Premium users.
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.
