UEM Edgenta Bhd will be adopting a new dividend policy with effect from its financial year ending Dec 31, 2018 (FY18).
In a filing to Bursa Malaysia on Tuesday, UEM said it intends to distribute dividends based on 50% to 80% dividend payout ratio based on the reported consolidated net profit attributable to shareholders after non-controlling interest (PATANCI).
The move will be representing an increase as compared to the previous dividend policy payout ratio of up to 70%.
The company said that the revised dividend policy also provides a base, whereby at least 50% of PATANCI will be paid as dividend.
It is envisaged that dividend payout will remain to be on a semi-annual basis.
The increase in payout ratio is a testament of UEM Edgenta’s sound earnings visibility, backed by long-term contracts in the healthcare and infrastructure sectors.
The new dividend policy will provide sustainable returns to shareholders while instilling financial discipline to achieve an efficient capital structure.
To further enhance shareholders’ value, the Board may also from time-to-time, consider special dividends in the event of surplus cash after considering the future cash requirements and business plans.