Mrs. Bectors Food Specialities (NSE:BECTORFOOD) Has Affirmed Its Dividend Of ₹1.25

Mrs. Bectors Food Specialities Limited (NSE:BECTORFOOD) has announced that it will pay a dividend of ₹1.25 per share on the 9th of March. This payment means the dividend yield will be 0.5%, which is below the average for the industry.

View our latest analysis for Mrs. Bectors Food Specialities

Mrs. Bectors Food Specialities' Payment Has Solid Earnings Coverage

If it is predictable over a long period, even low dividend yields can be attractive. However, Mrs. Bectors Food Specialities' earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

The next year is set to see EPS grow by 95.0%. If the dividend continues on this path, the payout ratio could be 13% by next year, which we think can be pretty sustainable going forward.

Mrs. Bectors Food Specialities Is Still Building Its Track Record

It's not possible for us to make a backward looking judgement just based on a short payment history. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself.

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. Mrs. Bectors Food Specialities has seen EPS rising for the last five years, at 15% per annum. Mrs. Bectors Food Specialities definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Mrs. Bectors Food Specialities Looks Like A Great Dividend Stock

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. Taking this all into consideration, this looks like it could be a good dividend opportunity.

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 instance, we've picked out 1 warning sign for Mrs. Bectors Food Specialities that investors should take into consideration. Is Mrs. Bectors Food Specialities 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.