Pilani Investment and Industries (NSE:PILANIINVS) Has Affirmed Its Dividend Of ₹15.00

The board of Pilani Investment and Industries Corporation Limited (NSE:PILANIINVS) has announced that it will pay a dividend of ₹15.00 per share on the 11th of September. This payment means the dividend yield will be 0.8%, which is below the average for the industry.

View our latest analysis for Pilani Investment and Industries

Pilani Investment and Industries' Dividend Is Well Covered By Earnings

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Before making this announcement, Pilani Investment and Industries was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

If the trend of the last few years continues, EPS will grow by 11.0% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio will be 6.5%, which is in the range that makes us comfortable with the sustainability of the dividend.

Pilani Investment and Industries Has A Solid Track Record

The company has an extended history of paying stable dividends. The dividend has gone from an annual total of ₹17.86 in 2013 to the most recent total annual payment of ₹15.00. The dividend has shrunk at around 1.7% a year during that period. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Pilani Investment and Industries has seen EPS rising for the last five years, at 11% per annum. With a decent amount of growth and a low payout ratio, we think this bodes well for Pilani Investment and Industries' prospects of growing its dividend payments in the future.

We Really Like Pilani Investment and Industries' Dividend

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. 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.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Now, if you want to look closer, it would be worth checking out our free research on Pilani Investment and Industries management tenure, salary, and performance. Is Pilani Investment and Industries not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.