Weizmann's (NSE:WEIZMANIND) Dividend Will Be ₹0.50

The board of Weizmann Limited (NSE:WEIZMANIND) has announced that it will pay a dividend on the 29th of August, with investors receiving ₹0.50 per share. Based on this payment, the dividend yield will be 0.4%, which is fairly typical for the industry.

View our latest analysis for Weizmann

Weizmann's Dividend Is Well Covered By Earnings

Solid dividend yields are great, but they only really help us if the payment is sustainable. However, Weizmann's earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.

Looking forward, earnings per share could rise by 9.1% over the next year if the trend from the last few years continues. Assuming the dividend continues along recent trends, we think the payout ratio could be 8.1% by next year, which is in a pretty sustainable range.

Weizmann Has A Solid Track Record

The company has an extended history of paying stable dividends. The last annual payment of ₹0.50 was flat on the annual payment from10 years ago. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.

Weizmann Could Grow Its Dividend

The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Weizmann has grown earnings per share at 9.1% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Weizmann Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Weizmann might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've identified 2 warning signs for Weizmann (1 is concerning!) that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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