Jakarta, CNBC Indonesia – In the midst of the corona virus pandemic, issuers are trying to save cash by reducing the distribution of dividends or not even giving dividends at all.
However, this is an exception for the crude palm oil (CPO) company PT Provident Agro Tbk (PALM) which turns out to be brave enough to share retained profits from previous years’ profits as dividends or commonly known as Super Dividend.
The company owned by PT Saratoga Investama Sedaya Tbk (SRTG) which is controlled by famous businessman Sandiaga Uno and Edwin Soeryadjaya This company is ready to distribute dividends of Rp. 233 billion shares from the undetermined retained earnings of Rp. 340 billion, or payout ratio retained earnings of 68.52%.
The dividend amount reflects the dividend per share of IDR 33 / share or using the closing price Friday (23/10/20) at IDR 310 / unit representing dividend yield. dividend yield the jumbo was 10.64%.
Score dividend yield This is far above the average deposit interest rate amid cuts in benchmark interest rates due to the corona virus pandemic.
Dividend yield is the dividend per share divided by the stock market price. Simply put, dividend yield is the level of profit provided by the company.
“Approved to determine a portion of the Company’s retained earnings as of December 31, 2019, amounting to Rp 346.98 billion, consisting of Rp 340.98 billion of unspecified retained earnings and a general reserve fund balance of Rp 6 billion, to be distributed as cash dividends. to all shareholders of the company, “wrote PALM’s announcement, on the IDX, quoted on Monday (26/10/2020).
“… with a total amount of Rp. 233.50 billion or Rp. 33 per share, of which the cash dividend is taken from the portion of the retained earnings which has not been determined for use,” wrote PALM.
As for with data or the last trading day of PALM shares entitled to receive dividends falls on 3 November 2020 on the regular market and 5 November 2020 on the cash market, while the date of dividend payment is 20 November 2020.
Until the first semester of 2020, the company was still able to book a net profit of IDR 21 billion amidst the nCov-19 virus pandemic attack. ask in distributing retained earnings as dividends.
PALM shares are attractive considering the size of the limit auto reject down (ARB) or the lowest price for daily stock decline is at 7%, which means investors can still how about 3% even though there was an ARB on the date ex dateon the condition that investors made it out on that day.
It is fun to hunt dividends, but investors still have to be careful in doing this.
Because dividend trap aka the dividend trap could be waiting for market players who are not careful.
Oh yeah, don’t forget to take into account the tax payment too, it’s only 10%.
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
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