Hi understand that we should keep a watch on the dividend payout ratio which is dividends paid divided by NP, how about the case whereby the payout figures is higher than FCF. Should we be concerned about it?
1 Answers
Hi Henry,
There will be a concern of sustainability. it is ideal that the management don;t do it over a long period of time because it may eat into their cash.
How many years should we be looking at in terms of long period of time?
If you want to track, track as many as years as you can get
Alright thank you
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