YTL Corp’s dividend story sustainable

Tenaga Nasional Bhd says the 21-year power purchase agreement with YTL Power Generation Sdn Bhd has expired on Sept 30, 2015.

PETALING JAYA: Despite higher capital expenditure (capex) over the next few years, YTL Corp Bhd should be able to sustain its dividend payout of at least RM1bil, which is an over 80% payout ratio, says CIMB Research.

The research house said YTL’s management stressed that even with the additional capex for PT Tanjung Jati Power, the diversified group has stable cashflows from subsidiaries which can support a dividend yield of over 6%.