TUGU’s Dividend Yield Potential Reaches 7.9%
Amidst fluctuating stock price pressures due to external factors, PT Asuransi Tugu Pratama Indonesia Tbk or Tugu Insurance (TUGU) has the potential to distribute dividends with an attractive yield for the 2024 fiscal year.
Based on historical data, TUGU has consistently distributed dividends since listing on the Indonesia Stock Exchange (IDX) in 2018. The payout ratio or dividend payout ratio for each fiscal year has been in the range of 30-40%.
Reflecting on this historical data, there is a potential dividend for the 2024 fiscal year in the range of Rp 210 billion to Rp 280 billion from the 2024 fiscal year net profit of Rp 700.85 billion. This value is equivalent to a dividend per share of Rp 59.06 to Rp 78.75.
BCA Sekuritas Analyst, Ryan Santoso, assesses that TUGU’s yield or dividend is still attractive as it is at the level of 5.9% to 7.9% in the range of Rp 1,000. This, according to him, will hold TUGU’s correction, even though in recent days the exchange has moved with high volatility.
“At the current share price, TUGU’s dividend yield potential is quite attractive because it can be above the IDX High Dividend 20 average last year in the range of 6.7%,” he said.
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According to him, if TUGU’s shares correct again as happened in recent weeks, then it is an attractive entry point to get a higher dividend yield.
“Generally, shares with a large dividend history will strengthen ahead of the AGM to the dividend cum date, so there is still a chance of profit in the share price amidst the current exchange volatility,” he said.
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Historically, last year TUGU distributed dividends of Rp 528.96 billion or 40% of the 2023 fiscal year profit. This dividend is equivalent to a 12.7% yield. Furthermore, for the 2022 fiscal year, TUGU distributed dividends of Rp 138.86 billion or 40% of the profit. Meanwhile, in the 2021 fiscal year, TUGU distributed dividends of Rp 126.59 billion or 40% of the profit.
Ryan added that in addition to the attractive dividends, TUGU still has the potential for stock price increases. This is because TUGU’s price-to-book value (PBV) ratio is still in the range of 0.3x to 0.4x. “With valuations still cheap and consistently distributing dividends with attractive yields, this stock is suitable for medium and long-term investment,” he said.
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PBV is a ratio to compare stock prices to the company’s book value. The higher the PBV can reflect that the stock is more premium or expensive. Conversely, if it is lower, the stock price is still relatively cheap.
TUGU recorded a net profit of Rp 700.85 billion in the 2024 fiscal year. This profit was supported by gross premium collection which increased by 10.73% YoY to Rp 8.54 trillion. Underwriting revenue rose 13.8% YoY to Rp 2.97 trillion.
At the end of 2024, total assets were recorded at Rp 26.35 trillion, up 4.82% from the previous year. Total equity was recorded at Rp 10.5 trillion, up 2.22% from the previous year. TUGU’s risk-based capital (RBC) was recorded at 432% at the end of December 2024, far higher than the industry average of 326%.
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