Despite higher capital expenditure (capex) over the next few years, YTL Corp Bhd should be able to sustain its dividend payout of at least RM1bil, which is an over 80% payout ratio, says CIMB Research.
The research house said YTL’s management stressed that even with the additional capex for PT Tanjung Jati Power, the diversified group has stable cashflows from subsidiaries which can support a dividend yield of over 6%.
“YTL has largely achieved its optimal group structure, which should enable it to extract about RM1bil per year from its subsidiaries in order to pay handsome dividends.
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The research house said YTL’s management stressed that even with the additional capex for PT Tanjung Jati Power, the diversified group has stable cashflows from subsidiaries which can support a dividend yield of over 6%.
“YTL has largely achieved its optimal group structure, which should enable it to extract about RM1bil per year from its subsidiaries in order to pay handsome dividends.
For Free Signals and other KLSE online updates, click here OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
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