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ADRO to Distribute Final Dividend of US$197.5 Million, What Will the Yield Reach?

| | Source: BAREKSA.COM Translated from Indonesian | Business
ADRO to Distribute Final Dividend of US$197.5 Million, What Will the Yield Reach?
Image: BAREKSA.COM

PT Alamtri Resources Indonesia Tbk (ADRO), an integrated energy company, at its Annual General Meeting of Shareholders on Friday (17/4), decided to distribute a final dividend of US$197.5 million (approximately Rp3.39 trillion).

This decision was taken because the company chose to distribute almost all of its profits, precisely 99.96% of US$447.69 million, to shareholders, even though profit performance experienced a significant annual decline.

Quoting the AGM results, the total dividend distributed reaches US$447.5 million, of which US$250 million has been paid as an interim dividend on 15 January 2026, and the remainder of US$197.5 million will be distributed as a final dividend. Meanwhile, only around US$194,220 (0.04%) is retained as retained earnings.

Dividend and Yield Estimation

Assuming a closing price of Rp2,510 (16 April 2026):

[Source: ADRO, processed by Bareksa]

This two-digit yield is considered high for a large-cap stock and becomes the main attraction for income investors.

2025 Financial Performance

Despite the jumbo dividend, ADRO’s performance has weakened:

  • Net profit: down 67.55% year-on-year to US$447.69 million (approximately Rp7.59 trillion)

  • Revenue: down 9.86% year-on-year to US$1.87 billion (approximately Rp31.79 trillion)

Revenue details:

Mining services: US$1 billion

Coal trading: US$968.8 million

Others: US$60.52 million

Meanwhile:

Cost of goods sold down 2.67% to US$1.23 billion

Total assets up 1.71% to US$6.81 billion (approximately Rp115.62 trillion)

ADRO Dividend History

[Source: ADRO, processed]

What Does It Mean for Investors?

The nearly 100% payout policy amid declining profits indicates:

Focus on returns to shareholders

Efforts to maintain yield attractiveness

Supported by a buyback action of up to Rp5 trillion

However, investors need to note that:

Sharp profit decline → future dividends could change

Heavily influenced by coal prices and the energy cycle

Conclusion

ADRO continues to distribute a jumbo dividend despite declining profits, with a 99.96% payout and total yield of approximately 10.44%. This is attractive for income investors, but dividend sustainability will heavily depend on performance recovery and commodity prices.

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