Attention dividend hunters! Cyient Limited (NSEI:CYIENT) will be distributing its dividend of ₹4 per share on the 08 February 2018, and will start trading ex-dividend in 7 days time on the 30 January 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Cyient’s latest financial data to analyse its dividend attributes. View our latest analysis for Cyient
Here’s how I find good dividend stocks
If you are a dividend investor, you should always assess these five key metrics:
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Is it the top 25% annual dividend yield payer?
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Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
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Has it increased its dividend per share amount over the past?
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Is its earnings sufficient to payout dividend at the current rate?
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Will it have the ability to keep paying its dividends going forward?
Does Cyient pass our checks?
The current payout ratio for the stock is 52.39%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 32.97%, leading to a dividend yield of 2.47%. However, EPS should increase to ₹40.25, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. Although CYIENT’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time. Compared to its peers, Cyient has a yield of 1.53%, which is on the low-side for software stocks.
Next Steps:
If you are building an income portfolio, then Cyient is a complicated choice since it has some positive aspects as well as negative ones. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three pertinent aspects you should further examine:
1. Future Outlook: What are well-informed industry analysts predicting for CYIENT’s future growth? Take a look at our free research report of analyst consensus for CYIENT’s outlook.
2. Valuation: What is CYIENT worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether CYIENT is currently mispriced by the market.