Assessing the Upcoming Dividend and Financial Health of AVIFY
Advanced Info Service PCL (AVIFY, Financial) recently announced a dividend of $0.13 per share, payable on 2024-04-29, with the ex-dividend date set for 2024-02-16. 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 Advanced Info Service PCL's dividend performance and assess its sustainability.
What Does Advanced Info Service PCL Do?
Advanced Info Service PCL is a triple-play telecommunications provider. The company generates revenues from the provision of mobile phone services, mobile handset sales, and broadband services. Its broadband service includes various fibre technologies for households, leveraging the company's owned fibre infrastructure. In addition to the fibre networks, it also has mobile infrastructure. Its reportable segments include; Mobile phone services which is also the key revenue generating segment, Mobile phone and equipment sales, and Datanet and broadband services. The company generates the vast majority of its revenue in Thailand.
A Glimpse at Advanced Info Service PCL's Dividend History
Advanced Info Service PCL has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Advanced Info Service PCL's Dividend Yield and Growth
As of today, Advanced Info Service PCL currently has a 12-month trailing dividend yield of 4.08% and a 12-month forward dividend yield of 4.19%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Advanced Info Service PCL's annual dividend growth rate was 6.60%. Extended to a five-year horizon, this rate decreased to 2.50% per year. And over the past decade, Advanced Info Service PCL's annual dividends per share growth rate stands at -5.60%.
Based on Advanced Info Service PCL's dividend yield and five-year growth rate, the 5-year yield on cost of Advanced Info Service PCL stock as of today is approximately 4.62%.
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 2023-12-31, Advanced Info Service PCL's dividend payout ratio is 0.86, which may suggest that the company's dividend may not be sustainable.
Advanced Info Service PCL's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Advanced Info Service PCL's profitability 9 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Advanced Info Service PCL's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Advanced Info Service PCL's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Advanced Info Service PCL's revenue has increased by approximately 3.00% per year on average, a rate that underperforms approximately 51.89% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Advanced Info Service PCL's earnings increased by approximately 1.60% per year on average, a rate that underperforms approximately 58.84% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -1.80%, which underperforms approximately 71.15% of global competitors, raises questions about its long-term growth capacity.
Next Steps
Considering Advanced Info Service PCL's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors should weigh these factors carefully. While the company has a strong dividend history and a high profitability rank, the sustainability of its dividend is challenged by a high payout ratio and mixed growth performance. It is crucial for investors to consider whether the current yield compensates for the potential risks and to monitor the company's financial health and market position closely.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
