Yenher Holdings Berhad's Dividend Payment Raises Questions About Sustainability
Yenher Holdings Berhad will pay a dividend of MYR0.015 on April 11th, which represents an annual payment of 3.5% of the current stock price. This dividend payment is consistent with industry averages, but investors should be cautious about the company's ability to sustain this payout in the long term. The company's declining earnings per share over the past five years and negative free cash flows also raise concerns about its dividend sustainability.
- Despite a stable dividend policy, Yenher Holdings Berhad's minimal cash reserves pose a significant risk to its ability to maintain dividend payments.
- What are the implications of a potential downgrade in dividend sustainability for investors who have already purchased the stock, and how might this impact overall market sentiment?