Seamec Limited (NSE:SEAMECLTD) Will Pay A ₹1.00 Dividend In Three Days

It looks like Seamec Limited (NSE:SEAMECLTD) is about to go ex-dividend in the next three days. This means that investors who purchase shares on or after the 18th of February will not receive the dividend, which will be paid on the 9th of March.

Seamec's next dividend payment will be ₹1.00 per share, and in the last 12 months, the company paid a total of ₹1.00 per share. Based on the last year's worth of payments, Seamec has a trailing yield of 0.4% on the current stock price of ₹471.05. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Seamec has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Seamec

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Seamec has a low and conservative payout ratio of just 3.4% of its income after tax.

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

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. So we're not too excited that Seamec's earnings are down 4.0% a year over the past five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Seamec's dividend payments per share have declined at 4.0% per year on average over the past 10 years, which is uninspiring. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it.

Final Takeaway

Is Seamec worth buying for its dividend? Earnings per share have shrunk noticeably in recent years, although we like that the company has a low payout ratio. This could suggest a cut to the dividend may not be a major risk in the near future. We think this is a pretty attractive combination, and would be interested in investigating Seamec more closely.

So while Seamec looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. To help with this, we've discovered 1 warning sign for Seamec that you should be aware of before investing in their shares.

If you're in the market for dividend stocks, we recommend checking our list of top 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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