Qatar Islamic Insurance Group Q.P.S.C (DSM:QISI) Is Paying Out A Dividend Of QAR0.50

Qatar Islamic Insurance Group Q.P.S.C.'s (DSM:QISI) investors are due to receive a payment of QAR0.50 per share on 1st of January. This means that the annual payment will be 5.7% of the current stock price, which is in line with the average for the industry.

Check out our latest analysis for Qatar Islamic Insurance Group Q.P.S.C

Qatar Islamic Insurance Group Q.P.S.C's Future Dividend Projections Appear Well Covered By Earnings

While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. Based on the last payment, Qatar Islamic Insurance Group Q.P.S.C was quite comfortably earning enough to cover the dividend. This indicates that quite a large proportion of earnings is being invested back into the business.

Over the next year, EPS could expand by 14.6% if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could be 47% by next year, which is in a pretty sustainable range.

Dividend Volatility

While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The dividend has gone from an annual total of QAR0.40 in 2015 to the most recent total annual payment of QAR0.50. This implies that the company grew its distributions at a yearly rate of about 2.3% over that duration. Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent.

The Dividend Looks Likely To Grow

Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Qatar Islamic Insurance Group Q.P.S.C has impressed us by growing EPS at 15% per year over the past five years. Since earnings per share is growing at an acceptable rate, and the payout policy is balanced, we think the company is positioning itself well to grow earnings and dividends in the future.

We Really Like Qatar Islamic Insurance Group Q.P.S.C's Dividend

Overall, we like to see the dividend staying consistent, and we think Qatar Islamic Insurance Group Q.P.S.C 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. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Qatar Islamic Insurance Group Q.P.S.C that investors should take into consideration. 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.