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Edaran Berhad's (KLSE:EDARAN) Dividend Will Be MYR0.03

Simply Wall St · 01/05 00:00

Edaran Berhad (KLSE:EDARAN) has announced that it will pay a dividend of MYR0.03 per share on the 6th of February. This means that the annual payment will be 4.3% of the current stock price, which is in line with the average for the industry.

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Edaran Berhad's Projected Earnings Seem Likely To Cover Future Distributions

Solid dividend yields are great, but they only really help us if the payment is sustainable. Prior to this announcement, Edaran Berhad's dividend was comfortably covered by both cash flow and earnings. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth.

Over the next year, EPS could expand by 35.1% if recent trends continue. If the dividend continues along recent trends, we estimate the payout ratio will be 59%, which is in the range that makes us comfortable with the sustainability of the dividend.

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KLSE:EDARAN Historic Dividend January 5th 2026

See our latest analysis for Edaran Berhad

Edaran Berhad Is Still Building Its Track Record

Edaran Berhad's dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. The dividend has gone from an annual total of MYR0.0175 in 2021 to the most recent total annual payment of MYR0.0475. This means that it has been growing its distributions at 22% per annum over that time. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Edaran Berhad has grown earnings per share at 35% per year over the past five years. The company's earnings per share has grown rapidly in recent years, and it has a good balance between reinvesting and paying dividends to shareholders, so we think that Edaran Berhad could prove to be a strong dividend payer.

We Really Like Edaran Berhad's Dividend

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Case in point: We've spotted 2 warning signs for Edaran Berhad (of which 1 doesn't sit too well with us!) you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.