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Mangalore Refinery and Petrochemicals Limited (NSEI:MRPL) has pleased shareholders over the past 10 years, paying out an average dividend of 2.00% annually. The company is currently worth IN₨204.79B, and now yields roughly 5.14%. Let’s dig deeper into whether Mangalore Refinery and Petrochemicals should have a place in your portfolio. View our latest analysis for Mangalore Refinery and Petrochemicals
5 checks you should use to assess a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
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Is its annual yield among the top 25% of dividend payers?
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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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Does earnings amply cover its dividend payments?
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Will the company be able to keep paying dividend based on the future earnings growth?
How does Mangalore Refinery and Petrochemicals fare?
The current trailing twelve-month payout ratio for the stock is 30.28%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 24.30%, leading to a dividend yield of 2.88%. Moreover, EPS is also forecasted to fall to ₹13.64 in the upcoming year. The lower EPS on top of a lower payout ratio will lead to a fall in dividend payment moving forward. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Compared to its peers, Mangalore Refinery and Petrochemicals has a yield of 5.14%, which is high for Oil and Gas stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank Mangalore Refinery and Petrochemicals as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three relevant aspects you should look at:
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1. Future Outlook: What are well-informed industry analysts predicting for MRPL’s future growth? Take a look at our free research report of analyst consensus for MRPL’s outlook.
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2. Valuation: What is MRPL 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 MRPL is currently mispriced by the market.
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3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.