Mayur Uniquoters Limited (NSE:MAYURUNIQ) stock is about to trade ex-dividend in 3 days time. This means that investors who purchase shares on or after the 19th of August will not receive the dividend, which will be paid on the 5th of September.
Mayur Uniquoters's next dividend payment will be ₹0.50 per share. Last year, in total, the company distributed ₹3.25 to shareholders. Looking at the last 12 months of distributions, Mayur Uniquoters has a trailing yield of approximately 1.4% on its current stock price of ₹234.25. If you buy this business for its dividend, you should have an idea of whether Mayur Uniquoters's dividend is reliable and sustainable. As a result, readers should always check whether Mayur Uniquoters has been able to grow its dividends, or if the dividend might be cut.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Mayur Uniquoters is paying out just 19% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.
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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're encouraged by the steady growth at Mayur Uniquoters, with earnings per share up 5.2% on average over the last five years. Earnings per share have been increasing steadily and management is reinvesting almost all of the profits back into the business. If profits are reinvested effectively, this could be a bullish combination for future earnings and dividends.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Mayur Uniquoters has delivered an average of 24% per year annual increase in its dividend, based on the past 10 years of dividend payments. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.
Should investors buy Mayur Uniquoters for the upcoming dividend? Earnings per share have been growing moderately, and Mayur Uniquoters is paying out less than half its earnings and cash flow as dividends, which is an attractive combination as it suggests the company is investing in growth. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine significant earnings per share growth with a low payout ratio, and Mayur Uniquoters is halfway there. Mayur Uniquoters looks solid on this analysis overall, and we'd definitely consider investigating it more closely.
Ever wonder what the future holds for Mayur Uniquoters? See what the two analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow
If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
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