Suntec REIT paid a total dividend of 252 million SGD last year, for a market capitalization of 4,353 millions.
Dividend per share of Suntec REIT is 0.10 SGD, and his stock market price 1.73 SGD.
According to the chart, where dividend yield is displayed, Suntec REIT has a dividend yield of 5.87%, which is higher than the amount offered by both the market average and companies from Singapore. It is also bigger than average of Financials industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.
About the ability of Suntec REIT to maintain his current dividend of SGD 0.10 per share, an amount that accounts for 5.87%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Suntec REIT payout on ernings is currently 100.00%, which is higher than the market average, and companies of Financials industry, which are 40.24% and 44.35% respectively. Both figures show that Suntec REIT can have problems to keep with his present dividend yield.
The payout on earnings should be complemented with the payout on cash flow since it is this latter amount the one which can be distributed to shareholders. Cash flow per share of Suntec REIT is SGD 0.09 per share, which is lower than the dividend per share paid by the company of SGD 0.10, so the company does not generate enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of Suntec REIT, compared againt world market average, Singapore companies, Financials industry and Real Estate Investment Trusts sector companies. You might also need to check full financial report of Suntec REIT.
Suntory Beverage & F. Japan. Consumer Goods.Suntrust Banks. USA. Financials.Super Group. South Africa. Industrials.Surgutneftegaz. Russia. Oil and Gas.Surgutneftegaz Pref. Russia. Oil and Gas.Suruga Bank. Japan. Financials.
Sunny Optical Techno. China. Industrials.Sundrug Co Ltd. Japan. Consumer Services.Suncorp Group. Australia. Financials.Suncor Energy. Canada. Oil and Gas.Sunac China Holdings. China. Financials.Sun TV Network. India. Consumer Services.
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