Heineken Malaysia Dividend Payout Ratio - Dividend Machines by The Fifth Person

Q&A › Category: Dividend Stocks › Heineken Malaysia Dividend Payout Ratio

Amanda Wong asked 4 months ago

Hi, I learned from the webinar on idea of Heineken Malaysia stock. I looked through the Malaysia Dividend stock list in the dashboard and noticed the dividend payout ratio was 105% in 2018, 109% in 2019, 101% in 2022. Isn't this do not pass step #3 in checklist? I may miss out something. Please advice. Thank you.
Step #3: Is the company's dividend payout ratio sustainable (<100%) for the past five to ten years?

1 Answers

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Rusmin Ang Staff answered 4 months ago

Hi Amanda If it is within that 100%, we can still give it a pass if the variation isn't too wide from time to time. If you want to be conservative, then you can adjust back to 100% payout or less. Some businesses like Nestle/Heineken may have a mature business and do not need to retain earnings, so they chose to payout everything. But if the payout is way too big of a gap, i.e. 120%, 150%, etc.. then it is obviously they are paying out more than what they can afford to. In this case, we have to adjust downward back to 100%.