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It looks like Goldiam International Limited (NSE:GOLDIAM) is about to go ex-dividend in the next 3 days. Investors can purchase shares before the 20th of August in order to be eligible for this dividend, which will be paid on the 11th of September.
Goldiam International's next dividend payment will be ₹2.00 per share. Last year, in total, the company distributed ₹2.00 to shareholders. Calculating the last year's worth of payments shows that Goldiam International has a trailing yield of 2.2% on the current share price of ₹92.85. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Goldiam International has been able to grow its dividends, or if the dividend might be cut.
See our latest analysis for Goldiam International
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Goldiam International is paying out just 15% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.
Click here to see how much of its profit Goldiam International paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. It's encouraging to see Goldiam International has grown its earnings rapidly, up 24% a year for the past five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past 9 years, Goldiam International has increased its dividend at approximately 8.0% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.
To Sum It Up
From a dividend perspective, should investors buy or avoid Goldiam International? Goldiam International has grown its earnings per share while simultaneously reinvesting in the business. Unfortunately it's cut the dividend at least once in the past nine years, but the conservative payout ratio makes the current dividend look sustainable. Overall we think this is an attractive combination and worthy of further research.
Curious about whether Goldiam International has been able to consistently generate growth? Here's a chart of its historical revenue and earnings growth.