Only 8 Days Left To Cash In On Infosys Limited (NSE:INFY) Dividend, Should You Buy?

If you are interested in cashing in on Infosys Limited’s (NSEI:INFY) upcoming dividend of $30.5 per share, you only have 8 days left to buy the shares before its ex-dividend date, 14 June 2018, in time for dividends payable on the 26 June 2018. Should you diversify into Infosys and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. See our latest analysis for Infosys

5 questions to ask before buying a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

• Is it the top 25% annual dividend yield payer?

• Does it consistently pay out dividends without missing a payment or significantly cutting payout?

• Has dividend per share risen in the past couple of years?

• Is it able to pay the current rate of dividends from its earnings?

• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

NSEI:INFY Historical Dividend Yield Jun 5th 18

How well does Infosys fit our criteria?

Infosys has a trailing twelve-month payout ratio of 46.27%, which means that the dividend is covered by earnings. Going forward, analysts expect INFY’s payout to increase to 53.85% of its earnings, which leads to a dividend yield of 3.32%. However, EPS is forecasted to fall to $1.04 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Although INFY’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time. Compared to its peers, Infosys generates a yield of 2.70%, which is high for IT stocks.

Next Steps:

Considering the dividend attributes we analyzed above, Infosys is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Below, I’ve compiled three pertinent factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for INFY’s future growth? Take a look at our free research report of analyst consensus for INFY’s outlook.

2. Valuation: What is INFY worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether INFY is currently mispriced by the market.

3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.