Matrimony.com (NSE:MATRIMONY) Has Announced A Dividend Of ₹5.00

Matrimony.com Limited (NSE:MATRIMONY) has announced that it will pay a dividend of ₹5.00 per share on the 12th of September. Based on this payment, the dividend yield on the company's stock will be 1.0%, which is an attractive boost to shareholder returns.

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Matrimony.com's Projected Earnings Seem Likely To Cover Future Distributions

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, Matrimony.com's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

Looking forward, earnings per share is forecast to rise by 46.1% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 33% by next year, which is in a pretty sustainable range.

Check out our latest analysis for Matrimony.com

Matrimony.com Is Still Building Its Track Record

Matrimony.com's 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. Since 2018, the annual payment back then was ₹1.50, compared to the most recent full-year payment of ₹5.00. This works out to be a compound annual growth rate (CAGR) of approximately 19% a year over that time. It is always nice to see strong dividend growth, but with such a short payment history we wouldn't be inclined to rely on it until a longer track record can be developed.

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. Matrimony.com has seen EPS rising for the last five years, at 10% per annum. Matrimony.com definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Matrimony.com Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Matrimony.com might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Now, if you want to look closer, it would be worth checking out our free research on Matrimony.com management tenure, salary, and performance. Is Matrimony.com not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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