The board of CSE Global Limited (SGX:544) has announced that it will pay a dividend on the 26th of June, with investors receiving SGD0.015 per share. The dividend yield will be 6.5% based on this payment which is still above the industry average.
See our latest analysis for CSE Global
CSE Global’s Payment Has Solid Earnings Coverage
We like to see robust dividend yields, but that doesn’t matter if the payment isn’t sustainable. Before this announcement, CSE Global was paying out 75% of earnings, but a comparatively small 55% of free cash flows. This leaves plenty of cash for reinvestment into the business.
Over the next year, EPS is forecast to expand by 60.1%. Under the assumption that the dividend will continue along recent trends, we think the payout ratio could be 51% which would be quite comfortable going to take the dividend forward.
Dividend Volatility
While the company has been paying a dividend for a long time,…
