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Here's What We Like About Multi Commodity Exchange of India's (NSE:MCX) Upcoming Dividend

Simply Wall St · 3d ago

Multi Commodity Exchange of India Limited (NSE:MCX) is about to trade ex-dividend in the next 3 days. The ex-dividend date generally occurs two days 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 as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Accordingly, Multi Commodity Exchange of India investors that purchase the stock on or after the 28th of August will not receive the dividend, which will be paid on the 15th of October.

The company's next dividend payment will be ₹8.00 per share. Last year, in total, the company distributed ₹8.00 to shareholders. Calculating the last year's worth of payments shows that Multi Commodity Exchange of India has a trailing yield of 0.3% on the current share price of ₹3185.00. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.

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Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Multi Commodity Exchange of India paid out just 15% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

View our latest analysis for Multi Commodity Exchange of India

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

historic-dividend
NSEI:MCX Historic Dividend August 24th 2026

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. It's encouraging to see Multi Commodity Exchange of India has grown its earnings rapidly, up 47% a year for the past five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, 10 years ago, Multi Commodity Exchange of India has lifted its dividend by approximately 15% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

Final Takeaway

Has Multi Commodity Exchange of India got what it takes to maintain its dividend payments? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. Overall, Multi Commodity Exchange of India looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.

Wondering what the future holds for Multi Commodity Exchange of India? See what the 14 analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.