Control Print (NSE:CONTROLPR) Is Paying Out A Dividend Of ₹4.00

The board of Control Print Limited (NSE:CONTROLPR) has announced that it will pay a dividend of ₹4.00 per share on the 20th of February. The dividend yield will be 2.0% based on this payment which is still above the industry average.

Check out our latest analysis for Control Print

Control Print's Payment Has Solid Earnings Coverage

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, Control Print's earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS could expand by 8.7% if recent trends continue. If the dividend continues on this path, the payout ratio could be 30% by next year, which we think can be pretty sustainable going forward.

Control Print Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2013, the dividend has gone from ₹1.33 total annually to ₹9.00. This means that it has been growing its distributions at 21% per annum over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

Control Print Could Grow Its Dividend

Investors could be attracted to the stock based on the quality of its payment history. Control Print has seen EPS rising for the last five years, at 8.7% per annum. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.

Control Print Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Control Print might even raise payments in the future. 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.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've picked out 1 warning sign for Control Print that investors should know about before committing capital to this 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.