First Pacific Co Ltd's Dividend Analysis

As of today, First Pacific Co Ltd currently has a 12-month trailing dividend yield of 2.86% and a 12-month forward dividend yield of 5.12%. The notable difference between these two figures suggests an expectation of increased dividend payments over the next 12 months, which could be an attractive proposition for investors seeking growing income. The forward yield indicates that analysts and the company anticipate higher distributions, potentially driven by improved earnings performance or a more generous payout policy in the near future.

Over the past three years, First Pacific Co Ltd's annual dividend growth rate was 9.20%. Extended to a five-year horizon, this rate increased to 13.40% per year, showcasing the company's ability to accelerate its dividend growth over time. However, when viewed over the past decade, the annual dividends per share growth rate stands at 5.70%, reflecting a more moderate but still positive long-term trajectory. Based on First Pacific Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of First Pacific Co Ltd stock as of today is approximately 5.36%, representing the potential return on an initial investment if dividends continue to grow at historical rates.

The Sustainability Question: Payout Ratio and Profitability

To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2026-06-30, First Pacific Co Ltd's dividend payout ratio is 0.25, indicating that the company distributes only a quarter of its earnings as dividends. This conservative approach leaves ample room for reinvestment in business operations and provides a solid cushion for maintaining dividends during challenging economic periods.

First Pacific Co Ltd's profitability rank, which offers an understanding of the company's earnings prowess relative to its peers, is another critical metric. GuruFocus ranks First Pacific Co Ltd's profitability 8 out of 10 as of 2026-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of the past 10 years, demonstrating its resilience and ability to generate consistent earnings. This strong profitability record underpins the company's capacity to sustain and potentially grow its dividend payments over time, making it a reliable consideration for value investors.

Growth Metrics: The Future Outlook

To ensure the sustainability of dividends, a company must have robust growth metrics. First Pacific Co Ltd's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. This favorable ranking indicates that the company is well-positioned to expand its operations and increase earnings, which are essential for supporting future dividend growth. Revenue is the lifeblood of any company, and First Pacific Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. However, First Pacific Co Ltd's revenue has increased by approximately -0.30% per year on average, a rate that underperforms approximately 65.7% of global competitors, which may warrant closer scrutiny from investors.

The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, First Pacific Co Ltd's earnings increased by approximately 20.80% per year on average, a rate that outperforms approximately 32.44% of global competitors. This strong earnings growth, despite the slight revenue decline, suggests that the company is effectively managing its costs and improving operational efficiency. Lastly, the company's 5-year EBITDA growth rate of 22.80% further underscores its operational strength, although it underperforms approximately 22.37% of global competitors, indicating that while the company is growing, some peers are expanding at a faster pace.

Next Steps: Evaluating the Investment Case

In conclusion, First Pacific Co Ltd presents a compelling picture for dividend-focused investors. With a low payout ratio of 0.25, strong profitability rank of 8 out of 10, and solid growth rank, the company appears well-positioned to maintain its dividend payments. The upcoming ex-dividend date of 2026-09-09 and payment date of 2026-11-05 offer a near-term income opportunity. However, the slight revenue decline and underperformance in certain growth metrics compared to global peers suggest that investors should monitor the company's ability to translate operational efficiency into top-line growth. The forward dividend yield of 5.12% indicates potential for increased payouts, which could enhance the attractiveness of this stock for income investors. As with any investment decision, value investors should weigh these quantitative metrics against qualitative factors such as management's strategic initiatives and the competitive landscape in Indonesia's consumer market. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.