A Comprehensive Review of Telekom Malaysia Bhd’s Dividend History, Yield, Growth, and Future Prospects

Telekom Malaysia Bhd (MYTEF) recently announced a dividend of $0.1 per share, payable on 2023-09-29, with the ex-dividend date set for 2023-09-11. As investors look forward to this upcoming payment, the spotlight also shines on the company’s dividend history, yield, and growth rates.

Telekom Malaysia Bhd is a triple-play telecommunications company that generates revenue from the provision of fixed-line voice services, data, broadband, and multimedia services. Their segments include Unifi, TM ONE, TM Global, and Shared Services/Others. The company generates the vast majority of its revenue in Malaysia.

Telekom Malaysia Bhd has maintained a consistent dividend payment record since 2020, with dividends currently distributed on a bi-annual basis. Their annual dividend growth rate over the past three years was 95.70%, but it decreased to 2.50% per year over a five-year period. The annual dividends per share growth rate over the past decade stands at -8.50%.

As of today, Telekom Malaysia Bhd has a 12-month trailing dividend yield of 3.39% and a 12-month forward dividend yield of 3.53%. This suggests an expectation of increased dividend payments over the next 12 months.

To assess the sustainability of the dividend, the company’s payout ratio and profitability should be evaluated. Telekom Malaysia Bhd’s dividend payout ratio is currently 0.48, indicating that they retain a significant portion of their earnings for future growth. Their profitability rank is 7 out of 10, suggesting good profitability prospects.

In terms of growth metrics, Telekom Malaysia Bhd has a growth rank of 7 out of 10, indicating a positive growth trajectory relative to competitors. While their revenue has increased by approximately 1.70% per year on average, their earnings and EBITDA growth rates underperform compared to global competitors.

In conclusion, Telekom Malaysia Bhd has a strong dividend performance with a consistent payment record and promising yield. Although their dividend growth rate has decreased over the decade, their payout ratio and profitability rank suggest a sustainable dividend backed by robust earnings. Despite underperforming in some growth metrics, their overall growth rank suggests a positive future outlook.