Bhansali Engineering Polymers (NSE:BEPL) Has Re-Affirmed Its Dividend Of ₹1.00

Bhansali Engineering Polymers Limited's (NSE:BEPL) investors are due to receive a payment of ₹1.00 per share on 28th of July. This means the annual payment is 2.6% of the current stock price, which is above the average for the industry.

View our latest analysis for Bhansali Engineering Polymers

Bhansali Engineering Polymers' Dividend Is Well Covered By Earnings

A big dividend yield for a few years doesn't mean much if it can't be sustained. Before making this announcement, Bhansali Engineering Polymers 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 58.1% over the next 12 months. If the dividend continues on this path, the payout ratio could be 12% by next year, which we think can be pretty sustainable going forward.

Bhansali Engineering Polymers Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The first annual payment during the last 10 years was ₹0.10 in 2012, and the most recent fiscal year payment was ₹2.00. This implies that the company grew its distributions at a yearly rate of about 35% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Bhansali Engineering Polymers has seen EPS rising for the last five years, at 58% per annum. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.

Bhansali Engineering Polymers Looks Like A Great Dividend Stock

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. 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.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Taking the debate a bit further, we've identified 1 warning sign for Bhansali Engineering Polymers that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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