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Kaspi.kz JSC's Dividend Analysis

Assessing the Sustainability of Kaspi.kz JSC's Upcoming Dividend

Kaspi.kz JSC (NASDAQ:KSPI) recently announced a dividend of $1.9 per share, payable on an unspecified future date, with the ex-dividend date set for 2024-04-12. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Kaspi.kz JSC's dividend performance and assess its sustainability.

What Does Kaspi.kz JSC Do?

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Kaspi.kz JSC is a dominant player in the payment, marketplace, and Fintech ecosystem in Kazakhstan. The company offers a range of interconnected, technologically seamless products and services that facilitate cashless payments, e-commerce transactions, and personal financial management. Its business is segmented into a Payments Platform, a Marketplace Platform, and a Fintech Platform, all of which are accessible through the Kaspi.kz Super App, a one-stop solution for modern financial and commercial needs.

Kaspi.kz JSC's Dividend Analysis
Kaspi.kz JSC's Dividend Analysis

A Glimpse at Kaspi.kz JSC's Dividend History

Kaspi.kz JSC has established a reputation for consistent dividend payments since 2021, with dividends currently distributed on a quarterly basis. Understanding the historical trends of dividends per share is crucial for investors, as it provides insight into the company's commitment to returning value to shareholders over time.

Kaspi.kz JSC's Dividend Analysis
Kaspi.kz JSC's Dividend Analysis

Breaking Down Kaspi.kz JSC's Dividend Yield and Growth

Kaspi.kz JSC currently boasts a trailing dividend yield of 4.88% and a forward dividend yield of 4.88%, indicating market expectations of consistent dividend payments in the coming year. Additionally, the 5-year yield on cost for Kaspi.kz JSC stock is approximately 4.88%, reflecting the company's solid track record in maintaining its dividend payouts.

Kaspi.kz JSC's Dividend Analysis
Kaspi.kz JSC's Dividend Analysis

The Sustainability Question: Payout Ratio and Profitability

The sustainability of Kaspi.kz JSC's dividends can be gauged by examining its dividend payout ratio, which currently stands at 0.68. This ratio suggests that the company retains a substantial portion of its earnings, which can be reinvested for future growth or to buffer against economic downturns. Kaspi.kz JSC's profitability rank is also impressive, scoring 9 out of 10, which indicates strong profitability compared to its peers. The company has reported net profit in 8 out of the past 10 years, underscoring its financial stability.

Growth Metrics: The Future Outlook

For dividends to be sustainable, a company must demonstrate robust growth metrics. Kaspi.kz JSC's growth rank of 9 out of 10 signals a positive growth trajectory. The company's revenue per share and 3-year revenue growth rate suggest a strong revenue model, with an average annual increase of approximately 43.30%, outperforming about 91.35% of global competitors. Furthermore, Kaspi.kz JSC's 3-year EPS growth rate and 5-year EBITDA growth rate are indicative of its ability to enhance earnings and sustain dividends, outpacing approximately 87.21% and 91.92% of global competitors, respectively.

Next Steps

In conclusion, Kaspi.kz JSC's consistent dividend payments, robust growth rate, prudent payout ratio, and solid profitability metrics paint a promising picture for value investors. The company's ability to grow revenue and earnings at impressive rates suggests that its dividends are well-supported and likely to be sustainable in the long term. For investors seeking high-dividend yield opportunities, Kaspi.kz JSC appears to be a strong contender, and further analysis using tools like the High Dividend Yield Screener on GuruFocus can help in making informed investment decisions.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.