What Are Indonesia's Best Dividend-Paying Listed Companies?
For long-term investors in the stock market it is worthwhile to take a look at those listed companies on the Indonesia Stock Exchange that consistently pay a dividend to common shareholders. Recently, the Astra Group, one of Indonesia's largest diversified conglomerates announced its 2017 interim dividend payout. Several other blue chip stocks are reportedly also close to announcing dividend payouts.
What are the Indonesian blue chip stocks that consistently pay dividend to their shareholders?
To answer this question we take a look at the LQ45 index, a stock market index for the Indonesia Stock Exchange (IDX) that is compiled by the research and development division of the IDX. The LQ45 consists of 45 stocks that meet a number of specific criteria. One of the key criteria is that these stocks are among the most liquid that are traded on the IDX.
One of the biggest Indonesian companies that loyally distributes dividend is Unilever Indonesia, one of the nation's largest consumer goods producers as well as one of the biggest companies listed on the IDX (in terms of market capitalization). Remarkably, the dividend pay out ratio of Unilever Indonesia is almost 100 percent every year over the past five years.
Another company that ranks high on this list is cigarette manufacturer HM Sampoerna (with an average dividend ratio that exceeds 100 percent over the past five years). However, there are rising concerns about the attractiveness of Indonesia's cigarette industry as tobacco excise taxes are rising steeply each year, while the government also introduced various other measures that aim at curbing cigarette consumption.
Generally, it can be stated that companies that safe most of their net profit for dividend payouts are those companies that have a long history and are market leaders. Therefore, there is less need to use its net profit for massive business expansion.
Best Dividend-Payout Ratios in Indonesia's LQ45 Index:
| Company | 2016 | 2015 | 2014 | 2013 | 2012 |
| Unilever Indonesia | 99.69% | 99.88% | 96.81% | 101.61% | 99.96% |
| HM Sampoerna | 98.16% | 99.89% | 120.33% | 98.45% | 99.99% |
| Indocement Tunggal Prakarsa | 88.36% | n.a. | 93.93% | 66.13% | n.a. |
| Bank Pembangunan Daerah Jawa Barat dan Banten |
74.75% | 59.71% | 68.20% | 55.16% | 55.66% |
| Surya Citra Media | 70.99% | 79.48% | 69.96% | n.a. | n.a. |
| Matahari Department Store | 70.01% | 70.01% | 59.99% | n.a. | n.a. |
| Telekomunikasi Indonesia | 70.00% | 59.99% | 60.69% | 69.99% | 65.00% |
| Indofood Sukses Makmur | 55.32% | 59.24% | 60.43% | 65.23% | 49.71% |
Source: Kontan