Qatar International Islamic Bank (Q.P.S.C) (DSM:QIIK) Will Pay A Dividend Of QAR0.24

The board of Qatar International Islamic Bank (Q.P.S.C) (DSM:QIIK) has announced that it will pay a dividend of QAR0.24 per share on the 1st of January. This payment means that the dividend yield will be 4.7%, which is around the industry average.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Qatar International Islamic Bank (Q.P.S.C)'s Earnings Will Easily Cover The Distributions

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue.

Having distributed dividends for at least 10 years, Qatar International Islamic Bank (Q.P.S.C) has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Qatar International Islamic Bank (Q.P.S.C)'s payout ratio of 62% is a good sign as this means that earnings decently cover dividends.

Looking forward, EPS is forecast to rise by 17.7% over the next 3 years. The future payout ratio could be 67% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

View our latest analysis for Qatar International Islamic Bank (Q.P.S.C)

Dividend Volatility

The company has a long dividend track record, but it doesn't look great with cuts in the past. The annual payment during the last 10 years was QAR0.40 in 2015, and the most recent fiscal year payment was QAR0.54. This means that it has been growing its distributions at 3.0% per annum over that time. We're glad to see the dividend has risen, but with a limited rate of growth and fluctuations in the payments the total shareholder return may be limited.

We Could See Qatar International Islamic Bank (Q.P.S.C)'s Dividend Growing

With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. It's encouraging to see that Qatar International Islamic Bank (Q.P.S.C) has been growing its earnings per share at 6.5% a year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.

In Summary

Overall, we think Qatar International Islamic Bank (Q.P.S.C) is a solid choice as a dividend stock, even though the dividend wasn't raised this year. The payout ratio looks good, but unfortunately the company's dividend track record isn't stellar. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious.

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. Taking the debate a bit further, we've identified 1 warning sign for Qatar International Islamic Bank (Q.P.S.C) that investors need to be conscious of moving forward. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.