Our analysis is based on comparing San Miguel Corp. with the following peers – Royal Dutch Shell Plc Sponsored ADR Class A, PetroChina Company Limited Sponsored ADR, Japan Tobacco Inc. and Thai Beverage Public Co., Ltd. (RDS.A-US, PTR-US, JAPAF-US and TBVPF-US).
San Miguel Corp.’s dividend yield is 1.31 percent and its dividend payout is 34.56 percent. This compares to a peer average dividend yield of 1.60 percent and a payout level of 68.41 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 83 out of a possible score of 100 looks sustainable.
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), SMGBF-US paid a high quality dividend, which represents a yield of 1.35% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 23.83x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to December 31, 2016), SMGBF-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 10.12x), investing cash flow (coverage of -4.03x), issuance cash flow (coverage of -2.46x) and twelve-month prior cash (coverage of 22.63x), for a total dividend coverage of 24.83x.
SMGBF-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -4.12x).
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 (%)||4.13||7.7||5.57||8.53||3.94||1.31|
|Dividend Payout (%)||16.14||10.48||37.02||55.3||34.56||34.56|
A complete list of metrics and analysis is available on the company page.
San Miguel Corp. engages in the manufacture and sale of beverage, food, and packaging products. It operates through the following segments: Beverages, Food, Packaging, Energy, Fuel & Oil, Infrastructure and Telecommunications. The Beverage segment produces and markets alcoholic and nonalcoholic beverages. The Food segment includes feeds production, poultry and livestock farming, processing and selling of poultry and meat products, processing and marketing of refrigerated and canned meat products, manufacturing and marketing of flour products, premixes and flour-based products, dairy-based products, breadfill, desserts, cooking oil, importation and marketing of coffee and coffee-related products. The packaging segment is involved in the production and marketing of packaging products including, glass containers, glass molds, polyethylene terephthalate (PET) bottles and preforms, PET recycling, plastic closures, corrugated cartons, woven polypropylene, kraft sacks and paperboard, pallets, flexible packaging, plastic crates, plastic floorings, plastic films, plastic trays, plastic pails and tubs, metal closures and two-piece aluminum cans, woven products, industrial laminates and radiant barriers. The Energy segment is engaged in power generation, distribution and trading and coal mining. The Fuel & Oil segment is engaged in refining and marketing of petroleum products. The Infrastructure segment is engaged in the business of construction and development of various infrastructure projects such as airports, roads, highways, toll roads, freeways, skyways, flyovers, viaducts and interchanges. The Telecommunications segment is engaged in rendering all types of domestic and international telecommunications services. The company was founded in 1890 and is headquartered in Mandaluyong, Philippines.
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