Wilmar International Limited (SGX:F34) has recently announced that it will be paying a dividend of $0.11 per share on the 14th of May, with a dividend yield of 4.8%. This news comes as the company’s board aims to reward its shareholders for their investment in the company.
The payment of the dividend is supported by solid earnings coverage, as the last dividend was easily covered by Wilmar International’s earnings. This indicates that the company is reinvesting a significant portion of its earnings back into the business to fuel growth. Looking ahead, earnings per share is forecasted to rise by 27.5% over the next year, with a sustainable payout ratio estimated at 60%.
Despite a history of dividend volatility, with at least one cut in the last 10 years, Wilmar International has been steadily increasing its distributions at a rate of 11% per annum since 2014. This growth potential is further supported by the company’s rising earnings per share, which have been increasing at a rate of 6.1% per annum over the last five years.
Overall, Wilmar International appears to be a solid choice as a dividend stock, with the potential for future growth in dividends. However, investors should be aware of the company’s past dividend cuts and higher payout ratios, which could impact future dividend payments. As always, it is important for investors to conduct their own research and consider all factors before making investment decisions.