InfoBeans Technologies (NSE:INFOBEAN) Has Affirmed Its Dividend Of ₹1.00

InfoBeans Technologies Limited (NSE:INFOBEAN) will pay a dividend of ₹1.00 on the 27th of August. This means the annual payment will be 0.2% of the current stock price, which is lower than the industry average.

View our latest analysis for InfoBeans Technologies

InfoBeans Technologies' Earnings Easily Cover The Distributions

If it is predictable over a long period, even low dividend yields can be attractive. Before making this announcement, InfoBeans Technologies was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Over the next year, EPS could expand by 15.8% if recent trends continue. If the dividend continues on this path, the payout ratio could be 7.5% by next year, which we think can be pretty sustainable going forward.

InfoBeans Technologies Doesn't Have A Long Payment History

Looking back, the dividend has been stable, but the company hasn't been paying a dividend for very long so we can't be confident that the dividend will remain stable through all economic environments. The payments haven't really changed that much since 4 years ago. InfoBeans Technologies hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.

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. We are encouraged to see that InfoBeans Technologies has grown earnings per share at 16% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for InfoBeans Technologies' prospects of growing its dividend payments in the future.

InfoBeans Technologies 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. Earnings are easily covering distributions, and the company is generating plenty of cash. 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 example, we've picked out 1 warning sign for InfoBeans Technologies that investors should know about before committing capital to this stock. Is InfoBeans Technologies not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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