Attention dividend hunters! Nucleus Software Exports Limited (BOM:531209) will be distributing its dividend of ₹8 per share on the 01 August 2018, and will start trading ex-dividend in 9 days time on the 22 June 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Nucleus Software Exports’s latest financial data to analyse its dividend characteristics. Check out our latest analysis for Nucleus Software Exports
5 questions I ask before picking a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is its annual yield among the top 25% of dividend-paying companies?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has it increased its dividend per share amount over the past?
- Does earnings amply cover its dividend payments?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does Nucleus Software Exports pass our checks?Nucleus Software Exports has a trailing twelve-month payout ratio of 39.09%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 28.17%, leading to a dividend yield of 2.21%. However, EPS should increase to ₹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 531209’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. In terms of its peers, Nucleus Software Exports generates a yield of 2.21%, which is high for Software stocks.
Taking into account the dividend metrics, Nucleus Software Exports ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I’ve put together three fundamental factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for 531209’s future growth? Take a look at our free research report of analyst consensus for 531209’s outlook.
- Valuation: What is 531209 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 531209 is currently mispriced by the market.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.