TELKOM INDONESIA PERSERO-ADR (NYSE:TLK) - A High-Yield Dividend Stock Worth Considering

TELKOM INDONESIA PERSERO-ADR (NYSE:TLK) was identified as a strong dividend candidate by our screening process, which looks for stocks with high dividend ratings while maintaining solid profitability and financial health. TLK stands out with a 7.84% dividend yield, well above industry and market averages, making it an attractive option for income-focused investors.

Key Dividend Strengths

• High Dividend Yield: At 7.84%, TLK’s yield is significantly higher than the industry average (5.16%) and the S&P 500 average (2.42%).
• Reliable Track Record: The company has paid dividends for at least 10 years, demonstrating consistency.
• Sustainable Growth: While dividend growth has been modest (1.73% annualized), earnings growth supports future payouts.

Profitability & Financial Health

• Strong Profitability (Rating: 8/10): TLK has delivered consistent profits, with a Return on Invested Capital (ROIC) of 13.74%, well above its cost of capital. Margins remain healthy, with a 15.69% profit margin outperforming most peers.
• Solid Financial Health (Rating: 6/10): The company maintains a manageable debt-to-equity ratio (0.34) and could repay its debt in just 1.87 years based on free cash flow. However, liquidity ratios (Current Ratio: 0.89) are below ideal levels, though solvency metrics mitigate concerns.

Valuation

TLK trades at a reasonable P/E ratio of 11.66, below both industry and S&P 500 averages, suggesting it is undervalued relative to earnings.

For a deeper analysis, review the full fundamental report on TLK.

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Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.