Arrow Greentech Limited (NSE:ARROWGREEN) will increase its dividend from last year’s comparable payment on the 22nd of October to ₹4.00. This makes the dividend yield about the same as the industry average at 0.7%.
Arrow Greentech’s Future Dividend Projections Appear Well Covered By Earnings
Solid dividend yields are great, but they only really help us if the payment is sustainable. However, prior to this announcement, Arrow Greentech’s dividend was comfortably covered by both cash flow and earnings. As a result, a large proportion of what it earned was being reinvested back into the business.
Over the next year, EPS could expand by 61.5% if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could be 6.8% by next year, which is in a pretty…
