It Might Not Be A Great Idea To Buy Frasers Property Limited For Its Next Dividend

Simply Wall St.

19 Jan

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Frasers Property Limited (SGX:TQ5) is about to trade ex-dividend in the next 3 days. The ex-...

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One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www-web.itiger.com/news/2504143801"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2504143801\",edition:\"fundamental\",,,undefined,":{"share":"https://ttm.financial/m/news/2504143801?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-01-19 08:03","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2504143801","market":"sg","top_or_hot":-1,"title":"It Might Not Be A Great Idea To Buy Frasers Property Limited For Its Next Dividend","media":"Simply Wall St.","content":"<div>\n<p>Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Frasers Property Limited (SGX:TQ5) is about to trade ex-dividend in the next 3 days. The ex-...</p>\n\n<a href=\"https://finance.yahoo.com/news/might-not-great-idea-buy-000327806.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance_sg","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>It Might Not Be A Great Idea To Buy Frasers Property Limited For Its Next Dividend</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIt Might Not Be A Great Idea To Buy Frasers Property Limited For Its Next Dividend\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-19 08:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/might-not-great-idea-buy-000327806.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Frasers Property Limited (SGX:TQ5) is about to trade ex-dividend in the next 3 days. The ex-...</p>\n\n<a href=\"https://finance.yahoo.com/news/might-not-great-idea-buy-000327806.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TQ5.SI","symbol_name":"星狮地产有限公司","start_time":0,"source_url":"https://finance.yahoo.com/news/might-not-great-idea-buy-000327806.html","article_id":"2504143801","we_media_id":null,"thumbnails":[],"rights":{"source":"yahoofinance_sg","url":"https://finance.yahoo.com/news/might-not-great-idea-buy-000327806.html","rn_cache_url":null,"customStyle":"","selectors":"article, body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2504143801","pubTimestamp":1737245007,"columns":[],"sourceInfo":{"source_id":"yahoofinance_sg","name":"Yahoo Finance"},"weMediaInfo":null,"summary":"Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Frasers Property Limited  is about to trade ex-dividend in the next 3 days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. This means that investors who purchase Frasers Property's shares on or after the 23rd of January will not receive the dividend, which will be paid on the 14th of February.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"TQ5.SI":"星狮地产有限公司","BK6512":"房地产股","BK6117":"房地产开发"},"translate_title":"购买星狮地产有限公司以获取下一次股息可能不是一个好主意","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TQ5.SI":0.9},"content_text":"Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Frasers Property Limited (SGX:TQ5) is about to trade ex-dividend in the next 3 days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. This means that investors who purchase Frasers Property's shares on or after the 23rd of January will not receive the dividend, which will be paid on the 14th of February.The company's next dividend payment will be S$0.045 per share, and in the last 12 months, the company paid a total of S$0.045 per share. Calculating the last year's worth of payments shows that Frasers Property has a trailing yield of 4.8% on the current share price of S$0.93. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.View our latest analysis for Frasers PropertyIf a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Frasers Property paid out 108% of its earnings, which is more than we're comfortable with, unless there are mitigating circumstances. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Luckily it paid out just 15% of its free cash flow last year.It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and Frasers Property fortunately did generate enough cash to fund its dividend. If executives were to continue paying more in dividends than the company reported in profits, we'd view this as a warning sign. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits.Click here to see the company's payout ratio, plus analyst estimates of its future dividends. SGX:TQ5 Historic Dividend January 19th 2025Have Earnings And Dividends Been Growing?Companies with falling earnings are riskier for dividend shareholders. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Frasers Property's earnings per share have fallen at approximately 24% a year over the previous five years. Such a sharp decline casts doubt on the future sustainability of the dividend.The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Frasers Property's dividend payments per share have declined at 0.6% per year on average over the past 10 years, which is uninspiring.Final TakeawayIs Frasers Property an attractive dividend stock, or better left on the shelf? It's never great to see earnings per share declining, especially when a company is paying out 108% of its profit as dividends, which we feel is uncomfortably high. Yet cashflow was much stronger, which makes us wonder if there are some large timing issues in Frasers Property's cash flows, or perhaps the company has written down some assets aggressively, reducing its income. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being.With that in mind though, if the poor dividend characteristics of Frasers Property don't faze you, it's worth being mindful of the risks involved with this business. Be aware that Frasers Property is showing 2 warning signs in our investment analysis, and 1 of those is concerning...If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"code":"91000000","status":"200"}}}