The Arab Potash Co. : ABPZF-US: Dividend Analysis : April 28th, 2017 (record date) : By the numbers : June 19, 2017

Our analysis is based on comparing The Arab Potash Co. with the following peers – Potash Corporation of Saskatchewan Inc., Uralkali PJSC Sponsored GDR RegS and Verde AgriTech Plc (POT-US, URAYY-US and NPK-CA).

The Arab Potash Co.’s dividend yield is 5.22 percent and its dividend payout is 141.66 percent. This compares to a peer median dividend yield of 4.25 percent and a payout level of 127.51 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 42 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), ABPZF-US paid a low quality dividend, which represents a yield of 6.28% 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 1 was high quality and 4 were low quality.
  • The ending cash balance, with a dividend coverage of 2.76x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to March 31, 2017), ABPZF-US paid a low 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 1.57x), investing cash flow (coverage of -1.31x), issuance cash flow (coverage of -0.00x) and twelve-month prior cash (coverage of 2.99x), for a total dividend coverage of 3.76x.

ABPZF-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.00x).

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 6.18 8.56 8.74 5.71 6.59 5.22
Dividend Payout (%) 125.02 158.54 124.03 75.02 146.07 141.66

A complete list of metrics and analysis is available on the company page.

Company Profile

The Arab Potash Co. engages in the manufacture of potash and salt. It produces fertilizer and industrial grade potassium oxide, potassium chloride, sodium chloride, magnesium chloride, calcium chloride, and moisture. The company was founded on July 7, 1956 and is headquartered in Amman, Jordan.


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