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If you are interested in cashing in on CRISIL Limited’s (NSE:CRISIL) upcoming dividend of ₹11.00 per share, you only have 4 days left to buy the shares before its ex-dividend date, 28 March 2019, in time for dividends payable on the 24 April 2019. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at CRISIL’s most recent financial data to examine its dividend characteristics in more detail.
View our latest analysis for CRISIL
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What Is A Dividend Rock Star?
It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically:
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It is paying an annual yield above 75% of dividend payers
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It has paid dividend every year without dramatically reducing payout in the past
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Its has increased its dividend per share amount over the past
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It can afford to pay the current rate of dividends from its earnings
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It is able to continue to payout at the current rate in the future
High Yield And Dependable
CRISIL’s dividend yield stands at 2.0%, which is high for Capital Markets stocks. But the real reason CRISIL stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.
Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. CRISIL has increased its DPS from ₹7 to ₹30 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock.
The company currently pays out 59% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 67% which, assuming the share price stays the same, leads to a dividend yield of around 2.5%. In addition to this, EPS should increase to ₹51.3. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward.
When considering the sustainability of dividends, it is also worth checking the cash flow of a company. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.