How CA Sales Holding performs with its dividends

Good morning 😃🌞☀️, let’s get into it.

Let’s break down how dividends work first.

First – What’s a Dividend?

A dividend is money paid to you just for owning a company’s shares.

It’s like the business saying “thank you” for believing in them, with actual cash.

So, How Does CA Sales Stack Up?

Let’s dig into 3 key facts:

1.Their Dividend Payments Are Stable and Growing

• In 2019, they paid P0.0584 per year.

• By 2025, the amount is expected to have increased significantly.

• Dividend Yield sits at 1.6% per year. That’s how much you earn relative to the share price.

Why this matters: Consistent and rising dividends are a sign of a healthy, growing business.

2.They’re Not Paying Too Much – And That’s a Good Thing

Payout from Profits:

• Only 19% of the company’s profits (earnings) are paid out as dividends.

• That means 81% is reinvested back into the business to fuel growth.

Payout from Cash:

• 27% of their cash flow goes to dividends.

• They keep 73% in reserve for operations, expansion, or rainy days.

This shows:

• Their dividends are sustainable.

• They aren’t draining the business to impress shareholders.

Investor Tip: A low payout ratio means room for dividends to grow in future years.

What This Means for You

If you’re a young investor, student, or young professional, here’s your takeaway:

• Dividend-paying stocks like CA Sales can grow your money while you sleep.

• Growth in dividend payments is a sign the company’s profits are rising.

• Low payout ratios mean you’re investing in a company that’s being smart with its money.

Recap

To conclude

You don’t need a million pula to get started, just discipline and a plan.

CA Sales shows us how a solid company can balance rewarding shareholders and growing its business.

Source: simplywallst