IIFL Securities Limited (NSE:IIFLSEC) Stock Goes Ex-Dividend In Just Three Days

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see IIFL Securities Limited (NSE:IIFLSEC) is about to trade ex-dividend in the next 3 days. You will need to purchase shares before the 18th of March to receive the dividend, which will be paid on the 9th of April.

IIFL Securities's next dividend payment will be ₹1.00 per share. Last year, in total, the company distributed ₹1.00 to shareholders. Based on the last year's worth of payments, IIFL Securities has a trailing yield of 1.9% on the current stock price of ₹53.9. If you buy this business for its dividend, you should have an idea of whether IIFL Securities's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.

View our latest analysis for IIFL Securities

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. IIFL Securities has a low and conservative payout ratio of just 18% of its income after tax.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see how much of its profit IIFL Securities paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. That explains why we're not overly excited about IIFL Securities's flat earnings over the past three years. We'd take that over an earnings decline any day, but in the long run, the best dividend stocks all grow their earnings per share.

Unfortunately IIFL Securities has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

To Sum It Up

Has IIFL Securities got what it takes to maintain its dividend payments? IIFL Securities's earnings per share have not grown at all in recent years, although we like that it is paying out a low percentage of its earnings. It doesn't appear an outstanding opportunity, but could be worth a closer look.

With that being said, if dividends aren't your biggest concern with IIFL Securities, you should know about the other risks facing this business. In terms of investment risks, we've identified 1 warning sign with IIFL Securities and understanding them should be part of your investment process.

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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