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EA asked 2 months ago

Hi there,
Netlink Trust’s dividend payout ratio for past few years has been more than 100%. Is this due to how the trust is set up and hence, not a concern? Or does this warrant concern over its ability to sustain future dividend payouts? Thanks!

1 Answers
Victor Chng answered 2 months ago

Hi EA,

Netlink trust payout its dividend from cash flow. The company’s earnings are unstated, which does not reflect its real earning power. You should take the dividend divided by cash flow.

EA replied 2 months ago

Got it, thanks Victor!