Bhansali Engineering Polymers (NSE:BEPL) Will Pay A Dividend Of ₹1.00

Bhansali Engineering Polymers Limited (NSE:BEPL) will pay a dividend of ₹1.00 on the 8th of November. This makes the dividend yield 2.9%, which will augment investor returns quite nicely.

Check out our latest analysis for Bhansali Engineering Polymers

Bhansali Engineering Polymers' Future Dividend Projections Appear Well Covered By Earnings

While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. However, prior to this announcement, Bhansali Engineering Polymers' dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share could rise by 26.5% over the next year if the trend from the last few years continues. If the dividend continues on this path, the payout ratio could be 54% by next year, which we think can be pretty sustainable going forward.

Bhansali Engineering Polymers Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of ₹0.0667 in 2014 to the most recent total annual payment of ₹4.00. This works out to be a compound annual growth rate (CAGR) of approximately 51% a year over that time. 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 27% per annum. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future.

Bhansali Engineering Polymers Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Bhansali Engineering Polymers might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Bhansali Engineering Polymers stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.