Our analysis is based on comparing Chunghwa Telecom Co. Ltd. with the following peers – KT Corporation Sponsored ADR, Telstra Corporation Limited Sponsored ADR, BT Group PLC Sponsored ADR, PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR Class B, Nippon Telegraph and Telephone Corporation Sponsored ADR, China Unicom (Hong Kong) Limited Sponsored ADR, Sify Technologies Limited Sponsored ADR and LM Ericsson Telefon AB Sponsored ADR Class B (KT-US, TLSYY-US, BT-US, TLK-US, NTTYY-US, CHU-US, SIFY-US and ERIC-US).
Chunghwa Telecom Co. Ltd.’s dividend yield is 3.76 percent and its dividend payout is 80.08 percent. This compares to a peer median dividend yield of 2.04 percent and a payout level of 88.00 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 50 out of a possible score of 100, lessens its attractiveness for dividend investors.
Dividend Quality Overview
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were high quality and 1 was low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to June 30, 2017), CHT-US paid a high quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.56x), investing cash flow (coverage of -0.51x), issuance cash flow (coverage of -0.03x) and twelve-month prior cash (coverage of 1.17x), for a total dividend coverage of 1.86x.
CHT-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.00x).
These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.
|Dividend Yield (%)||5.72||5.81||5.06||5.09||5.4||3.76|
|Dividend Payout (%)||103.88||104.5||90.9||88.01||106.2||106.2|
A complete list of metrics and analysis is available on the company page.
Chunghwa Telecom Co., Ltd. engages in the provision of telecommunication and information related services. It operates through the following business segments: Domestic Fixed Communications, Mobile Communications, Internet, International Fixed Communications, and Others. The company was founded on June 15, 1996 and is headquartered in Taipei, Taiwan.
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