Kuala Lumpur Kepong Berhad (KLSE:KLK) Confirms Dividend Payment of MYR0.40

Dividend Announcement: Kuala Lumpur Kepong Berhad will pay a dividend of MYR0.40 per share on February 10, resulting in a 3.0% yield, which is around the industry average.

Sustainability Concerns: The company's high dividend payout ratio, previously at 243% of cash flows, raises concerns about sustainability, although forecasts suggest a more manageable payout ratio of 49% in the coming year.

Dividend History: Despite a long history of dividend payments, Kuala Lumpur Kepong Berhad has cut its dividend at least once in the last decade, with growth in payments being less than 1% annually since 2015.

Earnings Growth Issues: The company's earnings per share have not shown significant growth over the past five years, which could impact the future sustainability of its dividend payments, making it a less attractive option for income-focused investors.