Dividend payout > FCF | The Investment Quadrant by The Fifth Person

Questions › Dividend payout > FCF

Ang Henry asked 7 years ago

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

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Victor Chng answered 7 years ago

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.

Ang Henry replied 7 years ago

How many years should we be looking at in terms of long period of time?

Victor Chng replied 7 years ago

If you want to track, track as many as years as you can get

Ang Henry replied 7 years ago

Alright thank you