JAKARTA – The May–June period is typically awaited by investors on the Indonesia Stock Exchange (IDX) as it coincides with the season for annual general meetings of shareholders (AGMS) and dividend announcements.

Over the past week, several issuers have announced dividend distributions with indicative dividend yields exceeding 8%.

PT Mitra Pinasthika Mustika Tbk (MPMX), for example, will pay a cash dividend of IDR 120 per share on 26 June 2025, with the cum date for the regular and negotiated markets set for 10 June.

Although the dividend payout ratio for the 2024 financial year dropped slightly from 97.6% to 91.8%, the indicative dividend yield reaches 11%, based on the closing price of IDR 1,095 on Wednesday (28/5).

According to IDNFinancials.com, MPMX has consistently posted dividend yields above 10% (based on price on the payment date) for the past seven years.

Dividend news has also come from PT Perusahaan Gas Negara Tbk (PGAS), which plans to pay USD 271.54 million in dividends, equivalent to IDR 181 per share (assuming an exchange rate of IDR 16,300/USD).

Maintaining its 80% dividend payout ratio, PGAS’s indicative dividend yield for the 2024 financial year reaches 10%, after its share price closed at IDR 1,820 on Wednesday (28/5).

However, as of today (30/5), PGAS has not yet disclosed the exact dividend payment schedule.

PT Bank Pembangunan Daerah Jawa Timur Tbk (BJTM) also offers an attractive dividend yield for the 2024 financial year. The regional bank will distribute a dividend of IDR 54.7 per share on 19 June, with the cum date for the regular and negotiated markets falling on Tuesday (3/6).

Its payout ratio has risen from 55.6% to 64.1% for the 2024 financial year, lifting the indicative yield to 9.7% based on the closing price of IDR 565 per share on Wednesday (28/5).

Tobacco issuer PT Hanjaya Mandala Sampoerna Tbk (HMSP) remains consistent in distributing 98.36% of its 2024 net profit as cash dividends.

Data from IDNFinancials.com shows that since 2015, HMSP has never failed to distribute dividends with payout ratios above 98%, even exceeding 100% in the 2018–2019 and 2021–2022 financial years.

The dividend of IDR 56.2 per share will be paid on 26 June, with the cum date set for 10 June 2025.

With the stock closing at IDR 655 per share on Wednesday (28/5), HMSP’s dividend yield is projected to reach 8.6% for the 2024 financial year.

Cash dividends are indeed one of the benefits of investing in stocks, besides capital gains—especially when yields are attractive and far exceed average deposit interest rates.

However, investors should beware of the so-called “dividend trap,” a situation where the stock price drops sharply after the cum date, rendering the dividend yield insufficient to offset the resulting capital loss. (ZH)