P.I.E. Industrial Berhad's (KLSE:PIE) Dividend Will Be Reduced To MYR0.05

editorial-team@simplywallst.com (Simply Wall St)

Wed, May 14, 2025, 3:36 PM 3 min read

P.I.E. Industrial Berhad (KLSE:PIE) is reducing its dividend to MYR0.05 connected the 20th of Junewhich is 29% little than past year's comparable outgo of MYR0.07. Based connected this payment, the dividend output volition beryllium 1.5%, which is little than the mean for the industry.

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It would beryllium bully for the output to beryllium higher, but we should besides cheque if higher levels of dividend outgo would beryllium sustainable. However, anterior to this announcement, P.I.E. Industrial Berhad's dividend was comfortably covered by some currency travel and earnings. As a result, a ample proportionality of what it earned was being reinvested backmost into the business.

Looking forward, net per stock is forecast to emergence by 125.7% implicit the adjacent year. If the dividend continues on caller trends, we estimation the payout ratio volition beryllium 18%, which is successful the scope that makes america comfy with the sustainability of the dividend.

See our latest investigation for P.I.E. Industrial Berhad

The institution has a agelong dividend way record, but it doesn't look large with cuts successful the past. Since 2015, the yearly outgo backmost past was MYR0.05, compared to the astir caller full-year outgo of MYR0.07. This implies that the institution grew its distributions astatine a yearly complaint of astir 3.4% implicit that duration. The dividend has seen immoderate fluctuations successful the past, truthful adjacent though the dividend was raised this year, we should retrieve that it has been chopped successful the past.

Growing net per stock could beryllium a mitigating origin erstwhile considering the past fluctuations successful the dividend. P.I.E. Industrial Berhad has seen EPS rising for the past 5 years, astatine 7.8% per annum. With a decent magnitude of maturation and a debased payout ratio, we deliberation this bodes good for P.I.E. Industrial Berhad's prospects of increasing its dividend payments successful the future.

Overall, we deliberation that P.I.E. Industrial Berhad could marque a tenable income stock, adjacent though it did chopped the dividend this year. The payout ratio looks good, but unluckily the company's dividend way grounds isn't stellar. The outgo isn't stellar, but it could marque a decent summation to a dividend portfolio.

Investors mostly thin to favour companies with a consistent, unchangeable dividend argumentation arsenic opposed to those operating an irregular one. At the aforesaid time, determination are different factors our readers should beryllium conscious of earlier pouring superior into a stock. As an example, we've identified 1 informing motion for P.I.E. Industrial Berhad that you should beryllium alert of earlier investing. Is P.I.E. Industrial Berhad not rather the accidental you were looking for? Why not cheque retired our selection of apical dividend stocks.