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$FEU’s Dividend Trim: When Enrollment Growth Isn’t Enough to Protect the Payout

  We’ve been blogging for free. If you enjoy our content, consider supporting us! Disclaimer:  This is for informational purposes and is  not  investment advice. Figures are taken from company disclosures and exchange data; valuation ratios include the author’s calculations based on cited inputs. Far Eastern University, Incorporated (FEU) has nudged its cash dividend lower,  to ₱14.00 per share from the prior ₱16.00 per share, as  shown in its dividend history.  While a ₱2 cut may look modest, dividend adjustments are rarely cosmetic. In FEU’s case, the latest interim financials suggest a clear rationale: profitability is softening as costs rise faster than revenues, cash is being pulled into capital spending, and operating cash conversion is pressured by seasonality and receivables growth .  This is not a distress story. It is, however, a capital-allocation story —a board choosing to preserve flexibility in a year when the underlying earnings en...