Paramount Corporation Berhad’s (KLSE:PARAMON) Shareholders Will Receive A Bigger Dividend Than Last Year

Simply Wall St

Mon, February 16, 2026 at 9:02 AM GMT+9 3 min read

In this article:

1724.KL

0.00%

PARAMON

Paramount Corporation Berhad (KLSE:PARAMON) will increase its dividend from last year’s comparable payment on the 13th of March to MYR0.045. This makes the dividend yield 7.1%, which is above the industry average.

We’ve found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Paramount Corporation Berhad’s Future Dividend Projections Appear Well Covered By Earnings

A big dividend yield for a few years doesn’t mean much if it can’t be sustained. However, prior to this announcement, Paramount Corporation Berhad’s dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to fall by 8.4%. If the dividend continues along the path it has been on recently, we estimate the payout ratio could be 43%, which is comfortable for the company to continue in the future.

KLSE:PARAMON Historic Dividend February 16th 2026

Check out our latest analysis for Paramount Corporation Berhad

Dividend Volatility

The company’s dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2016, the dividend has gone from MYR0.0536 total annually to MYR0.075. This means that it has been growing its distributions at 3.4% per annum over that time. It’s encouraging to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth anyway, which makes this less attractive as an income investment.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, it’s even more important to see if earnings per share is growing. Paramount Corporation Berhad has seen EPS rising for the last five years, at 50% per annum. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future.

Paramount Corporation Berhad Looks Like A Great Dividend Stock

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. If earnings do fall over the next 12 months, the dividend could be buffeted a little bit, but we don’t think it should cause too much of a problem in the long term. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Case in point: We’ve spotted 3 warning signs for Paramount Corporation Berhad (of which 2 shouldn’t be ignored!) you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch** with us directly.**_ Alternatively, email editorial-team (at) simplywallst.com._

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Terms and Privacy Policy

Privacy Dashboard

More Info