Cords Cable Industries (NSE:CORDSCABLE) Has Affirmed Its Dividend Of ₹1.00

Cords Cable Industries Limited's (NSE:CORDSCABLE) investors are due to receive a payment of ₹1.00 per share on 28th of October. This makes the dividend yield 0.5%, which will augment investor returns quite nicely.

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Cords Cable Industries' Payment Could Potentially Have Solid Earnings Coverage

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Cords Cable Industries is quite easily earning enough to cover the dividend, however it is being let down by weak cash flows. We think that cash flows should take priority over earnings, so this is definitely a worry for the dividend going forward.

Looking forward, earnings per share could rise by 13.2% over the next year if the trend from the last few years continues. If the dividend continues along recent trends, we estimate the payout ratio will be 7.3%, which is in the range that makes us comfortable with the sustainability of the dividend.

See our latest analysis for Cords Cable Industries

Cords Cable Industries Doesn't Have A Long Payment History

The company hasn't been paying a dividend for very long at all, so we can't really make a judgement on how stable the dividend has been. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Cords Cable Industries has impressed us by growing EPS at 13% per year over the past five years. Cords Cable Industries definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Our Thoughts On Cords Cable Industries' Dividend

Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. With cash flows lacking, it is difficult to see how the company can sustain a dividend payment. We would be a touch cautious of relying on this stock primarily for the dividend income.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. To that end, Cords Cable Industries has 3 warning signs (and 1 which is significant) we think you should know about. Is Cords Cable Industries not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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