Quick Heal Technologies Limited (NSE:QUICKHEAL) Looks Like A Good Stock, And It's Going Ex-Dividend Soon – Simply Wall St
Quick Heal Technologies Limited (NSE:QUICKHEAL) is about to trade ex-dividend in the next 3 days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Meaning, you will need to purchase Quick Heal Technologies' shares before the 18th of August to receive the dividend, which will be paid on the 26th of September.
The company's next dividend payment will be ₹4.50 per share. Last year, in total, the company distributed ₹4.50 to shareholders. Last year's total dividend payments show that Quick Heal Technologies has a trailing yield of 2.1% on the current share price of ₹210.2. If you buy this business for its dividend, you should have an idea of whether Quick Heal Technologies's dividend is reliable and sustainable. As a result, readers should always check whether Quick Heal Technologies has been able to grow its dividends, or if the dividend might be cut.
Check out our latest analysis for Quick Heal Technologies
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Quick Heal Technologies paid out a comfortable 34% of its profit last year. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Thankfully its dividend payments took up just 31% of the free cash flow it generated, which is a comfortable payout ratio.
It's positive to see that Quick Heal Technologies's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Click here to see how much of its profit Quick Heal Technologies paid out over the last 12 months.
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. Fortunately for readers, Quick Heal Technologies's earnings per share have been growing at 12% a year for the past five years. Earnings per share have been growing rapidly and the company is retaining a majority of its earnings within the business. This will make it easier to fund future growth efforts and we think this is an attractive combination – plus the dividend can always be increased later.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Quick Heal Technologies has delivered an average of 10% per year annual increase in its dividend, based on the past six years of dividend payments. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.
Should investors buy Quick Heal Technologies for the upcoming dividend? Quick Heal Technologies has grown its earnings per share while simultaneously reinvesting in the business. Unfortunately it's cut the dividend at least once in the past six years, but the conservative payout ratio makes the current dividend look sustainable. Overall we think this is an attractive combination and worthy of further research.
So while Quick Heal Technologies looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. To help with this, we've discovered 2 warning signs for Quick Heal Technologies that you should be aware of before investing in their shares.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
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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.
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Quick Heal Technologies Limited provides security software products and solutions to consumers, small businesses, government establishments, and corporate houses in India and internationally.
Flawless balance sheet average dividend payer.
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