The Motley Fool Singapore
Genting Singapore Ltd Has a Dividend Yield of Around 4%: Is the Dividend Sustainable?
Genting Singapore (SGX: G13) is the owner-operator of Singapore’s first integrated resort, Resorts World Sentosa. The resort offers attractions such as a casino, one of the world’s largest oceanariums, South-East Asia’s only Universal Studios theme park, hotels, and many more. Genting Singapore shares are currently changing hands at S$0.97 apiece at the time of writing. At that price, the company sports a dividend yield of 3.6%. The company’s dividend yield looks attractive, but is it sustainable? To find out if Genting Singapore’s dividend is sustainable, we should look at its free cash flow and dividend payout ratio instead of its dividend yield alone. By “sustainable,” I mean that the company’s dividends can be paid from the cash generated from its daily operations, and