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PLDT Inc's Dividend Analysis

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%.

PLDT Inc's Dividend Analysis
PLDT Inc's Dividend Analysis

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%.

PLDT Inc's Dividend Analysis
PLDT Inc's Dividend Analysis

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.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. PLDT Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.

Revenue is the lifeblood of any company, and PLDT Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. PLDT Inc's revenue has increased by approximately 6.70% per year on average, a rate that outperforms approximately 62.26% 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, PLDT Inc's earnings increased by approximately 6.80% per year on average, a rate that outperforms approximately 52.22% of global competitors.

Lastly, the company's 5-year EBITDA growth rate of 3.00%, which outperforms approximately 41.71% of global competitors, indicates a stable financial foundation for future dividend payments.

Next Steps

Considering PLDT Inc's solid dividend history, current yield, and growth rates, investors have reasons to be optimistic about the company's ability to continue rewarding shareholders. The payout ratio and profitability rank underscore a balance between distributing earnings and retaining capital for growth, while the growth metrics indicate a company well-positioned for the future. As value investors weigh these factors, PLDT Inc stands out as a potentially attractive dividend-paying stock. For those seeking additional investment opportunities, 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.

This article first appeared on GuruFocus.