Wealth First Portfolio Managers (NSE:WEALTH) Will Pay A Larger Dividend Than Last Year At ₹3.00

Wealth First Portfolio Managers Limited's (NSE:WEALTH) dividend will be increasing from last year's payment of the same period to ₹3.00 on 15th of October. Even though the dividend went up, the yield is still quite low at only 0.9%.

See our latest analysis for Wealth First Portfolio Managers

Wealth First Portfolio Managers' Payment Has Solid Earnings Coverage

Even a low dividend yield can be attractive if it is sustained for years on end. Before making this announcement, Wealth First Portfolio Managers was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share could rise by 18.2% 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 17% by next year, which is in a pretty sustainable range.

Wealth First Portfolio Managers Doesn't Have A Long Payment History

Wealth First Portfolio Managers' dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. The dividend has gone from an annual total of ₹0.60 in 2018 to the most recent total annual payment of ₹3.00. This means that it has been growing its distributions at 38% per annum over that time. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Wealth First Portfolio Managers has impressed us by growing EPS at 18% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Wealth First Portfolio Managers' prospects of growing its dividend payments in the future.

Wealth First Portfolio Managers Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Wealth First Portfolio Managers is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. 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. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 3 warning signs for Wealth First Portfolio Managers that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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