PLDT Inc's Dividend Analysis
In This Article:
An In-Depth Look at PLDT Inc's Dividend Sustainability and Growth
PLDT Inc (NYSE:PHI) recently announced a dividend of $0.82 per share, payable on 2024-04-19, with the ex-dividend date set for 2024-03-19. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into PLDT Inc's dividend performance and assess its sustainability.
What Does PLDT Inc Do?
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PLDT Inc is the leading telecommunications carrier in the Philippines. The company operates the nation's extensive fixed-line network and holds more than half of the market share in the domestic wireless space. First Pacific, a Hong Kong-based investment and management company specializing in consumer and telecommunication businesses, owns about 26% of PLDT Inc, while two subsidiaries of Nippon Telegraph and Telephone jointly own about 21%.
A Glimpse at PLDT Inc's Dividend History
PLDT Inc has maintained a consistent dividend payment record since 2005. Dividends are currently distributed on a bi-annual basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down PLDT Inc's Dividend Yield and Growth
As of today, PLDT Inc currently has a 12-month trailing dividend yield of 7.82% and a 12-month forward dividend yield of 6.78%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, PLDT Inc's annual dividend growth rate was 7.30%. Extended to a five-year horizon, this rate decreased to 4.70% per year. And over the past decade, PLDT Inc's annual dividends per share growth rate stands at -5.70%.
Based on PLDT Inc's dividend yield and five-year growth rate, the 5-year yield on cost of PLDT Inc stock as of today is approximately 9.84%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, PLDT Inc's dividend payout ratio is 0.56.
PLDT Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks PLDT Inc's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.