Malaysia Smelting Corporation Berhad (KLSE:MSC) to Distribute RM00.07 Dividend in Three Days

Malaysia Smelting Corporation Berhad (KLSE:MSC) is gearing up to trade ex-dividend in the next three days, with the ex-dividend date set for the 13th of June. Investors looking to cash in on the company’s dividend payout of RM00.07 per share must ensure they own the stock before this crucial date. The dividend will be paid out on the 28th of June, providing shareholders with a source of income.

With a trailing yield of approximately 4.9% on its current stock price of RM02.83, Malaysia Smelting Corporation Berhad’s dividend payout seems attractive. However, it is essential to assess the company’s ability to sustain and potentially grow its dividend in the future. The company paid out 87% of its earnings as dividends last year, which could limit reinvestment in the business and leave the dividend vulnerable to a downturn.

Despite this, the company’s dividend is covered by both profit and cash flow, indicating its sustainability. Malaysia Smelting Corporation Berhad has been growing its earnings per share at a rate of 14% annually for the past five years, showcasing its potential for dividend growth. Additionally, the company has increased its dividend by approximately 32% per year on average over the last seven years.

While the company’s earnings growth is promising, investors should be cautious of the risks involved. It is crucial to conduct thorough research and consider all factors before investing in Malaysia Smelting Corporation Berhad. As the ex-dividend date approaches, shareholders must make informed decisions to maximize their returns.