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Is Turnstar Holdings a worthy investment for dividend wealth building?

Insight into this company’s dividends

Author

Boago Sephutho
May 22, 2025

Good morning 😃☀️🌞, let’s get into it.

Is Turnstar a smart long-term investment for building real wealth? Let’s break it down.

The Deal

Turnstar is offering a dividend of P0.20 per share to investors who own the stock before May 30, 2025. That’s a solid 8.8% dividend yield — meaning if you invested P1,000, you’d earn P88 this year just from dividends (excluding price changes).

Dividend Payment Date: June 11, 2025

Buy Before: May 30, 2025

Is the Dividend Safe?

Let’s have a look:

Metric

Status

Dividend Yield

8.8% (Very Attractive)

Dividend Growth

0.03% (Flat)

Payout Ratio

117% (Unsustainable)

Passed Criteria

4/6 Dividend Safety Checks

The payout ratio is a concern: Turnstar is paying out more than it earns, which might not be sustainable long-term. If profits drop or costs rise, dividends may get cut.

What About Company Strength?

This is where Turnstar shines.

  • Debt-to-Equity Ratio: 28.4% (low and safe)

  • Debt Coverage: Operating cash flow covers 23% of total debt

  • Interest Coverage: EBIT (Earnings Before Interest and Taxes) covers interest payments 4.9x

  • Asset Backing: Over P2.8 billion in physical property assets

Turnstar has strong financial foundations, likely because it owns large properties (like malls and offices), which generate steady rental income.

So, Is Turnstar a Good Investment?

Yes, if you want

  • Reliable short-term income

  • Exposure to real estate in Botswana

  • A dividend stock to diversify your portfolio

Think twice if you want:

  • Fast-growing dividends year after year

  • High capital gains (stock price growth)

  • A company with more reinvestment into innovation

Final Thoughts for Young Investors

Whether you’re a student starting small, a young pro investing your salary, or an entrepreneur parking your extra cash, Turnstar can be a solid starter dividend stock — but don’t put all your eggs in one basket.

Use Turnstar to learn how passive income works, then build up a portfolio of dividend stocks over time. It’s all about consistency and patience.

Next Step:

If you’re interested in collecting that June 11 dividend, make sure you buy shares before May 30.

Source: simplywallst