Rajratan Global Wire Limited (NSE:RAJRATAN) has announced a dividend payment of ₹2.00 per share on August 29th. This brings the dividend yield to 0.3%, which is below the industry average.
Prior to this announcement, the company’s earnings easily covered the dividend, but free cash flows were negative. While earnings per share is expected to rise by 137.9% over the next year, the payout ratio could be 7.9%, indicating sustainability.
Rajratan Global Wire has a solid track record of growing dividends at a rate of about 37% yearly since 2014. With earnings per share growing at 22% annually over the past five years, the company could be a good dividend stock with a low payout ratio.
However, there are concerns about the sustainability of the dividend payment due to cash flow issues. Investors should consider other factors besides dividends when analyzing the company.
Overall, while the dividend has not been cut, caution is advised regarding Rajratan Global Wire’s dividend payments. It is important for investors to assess all aspects of the company before making investment decisions.