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Thong Guan Industries Berhad (KLSE:TGUAN) Goes Ex-Dividend Soon

Simply Wall St · 1d ago

Thong Guan Industries Berhad (KLSE:TGUAN) stock is about to trade ex-dividend in 4 days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves at least 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 Thong Guan Industries Berhad's shares on or after the 30th of December will not receive the dividend, which will be paid on the 19th of January.

The company's next dividend payment will be RM00.02 per share. Last year, in total, the company distributed RM0.09 to shareholders. Based on the last year's worth of payments, Thong Guan Industries Berhad stock has a trailing yield of around 5.5% on the current share price of RM01.18. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. We need to see whether the dividend is covered by earnings and if it's growing.

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Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. That's why it's good to see Thong Guan Industries Berhad paying out a modest 47% of its earnings. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Thankfully its dividend payments took up just 38% of the free cash flow it generated, which is a comfortable payout ratio.

It's positive to see that Thong Guan Industries Berhad's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

View our latest analysis for Thong Guan Industries Berhad

Click here to see how much of its profit Thong Guan Industries Berhad paid out over the last 12 months.

historic-dividend
KLSE:TGUAN Historic Dividend December 25th 2025

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. So we're not too excited that Thong Guan Industries Berhad's earnings are down 4.9% a year over the past five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Thong Guan Industries Berhad has delivered 5.0% dividend growth per year on average over the past 10 years.

Final Takeaway

Has Thong Guan Industries Berhad got what it takes to maintain its dividend payments? Thong Guan Industries Berhad has comfortably low cash and profit payout ratios, which may mean the dividend is sustainable even in the face of a sharp decline in earnings per share. Still, we consider declining earnings to be a warning sign. All things considered, we are not particularly enthused about Thong Guan Industries Berhad from a dividend perspective.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. For example - Thong Guan Industries Berhad has 1 warning sign we think you should be aware of.

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