CSE Global Limited (SGX:544) will pay a dividend of SGD0.015 on the 20th of May. Based on this payment, the dividend yield on the company’s stock will be 6.3%, which is an attractive boost to shareholder returns.
See our latest analysis for CSE Global
CSE Global’s Payment Has Solid Earnings Coverage
A big dividend yield for a few years doesn’t mean much if it can’t be sustained. The last payment made up 75% of earnings, but cash flows were much higher. This leaves plenty of cash for reinvestment into the business.
Looking forward, earnings per share is forecast to rise by 71.2% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 47%, which would make us comfortable with the sustainability of the dividend, despite the levels currently being quite high.
Dividend Volatility
Although the company has a long dividend history, it has been cut at least once in the last 10…
