Industry News

Taiwan Steel Union (TWSE:6581) Is Increasing Its Dividend To NT$6.00

Views : 48
Update time : 2025-02-28 18:35:37
The board of Taiwan Steel Union Co., Ltd. (TWSE:6581) has announced that it will be increasing its dividend by 40% on the 25th of April to NT$6.00, up from last year's comparable payment of NT$4.30. This takes the annual payment to 3.8% of the current stock price, which is about average for the industry.

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. Prior to this announcement, Taiwan Steel Union's earnings easily covered the dividend, but free cash flows were negative. No cash flows could definitely make returning cash to shareholders difficult, or at least mean the balance sheet will come under pressure.

Looking forward, earnings per share could rise by 15.8% over the next year if the trend from the last few years continues. Assuming the dividend continues along recent trends, we think the payout ratio could be 74% by next year, which is in a pretty sustainable range.

Related News
Read More >>
Taiwan’s Yieh Phui seeks vindication after US preliminary dumping determination on corrosion-resistant steel products Taiwan’s Yieh Phui seeks vindication after US preliminary dumping determination on corrosion-resistant steel products
Apr .17.2025
Taiwan’s Yieh Phui seeks vindication after US preliminary dumping determination on corrosion-resistant steel products
Rio Tinto posts declines in Q1 Pilbara iron ore shipments & production Rio Tinto posts declines in Q1 Pilbara iron ore shipments & production
Apr .17.2025
Rio Tinto posts declines in Q1 Pilbara iron ore shipments & production
China’s crude steel output rises by 4.6% in May, hitting 10-month high China’s crude steel output rises by 4.6% in May, hitting 10-month high
Apr .17.2025
China’s crude steel output rises by 4.6% in May, hitting 10-month high
Philippine SteelAsia to start new steel sections mill in 2027 Philippine SteelAsia to start new steel sections mill in 2027
Apr .17.2025
Philippine SteelAsia to start new steel sections mill in 2027