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ICICI Securities Limited (NSE:ISEC) is about to trade ex-dividend in the next 3 days. You will need to purchase shares before the 25th of July to receive the dividend, which will be paid on the 1st of September.

ICICI Securities's next dividend payment will be ₹5.70 per share, on the back of last year when the company paid a total of ₹11.40 to shareholders. Calculating the last year's worth of payments shows that ICICI Securities has a trailing yield of 5.1% on the current share price of ₹225.05. If you buy this business for its dividend, you should have an idea of whether ICICI Securities's dividend is reliable and sustainable. As a result, readers should always check whether ICICI Securities has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for ICICI Securities

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. ICICI Securities is paying out an acceptable 62% of its profit, a common payout level among most companies.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see how much of its profit ICICI Securities paid out over the last 12 months.

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 earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. It's encouraging to see ICICI Securities has grown its earnings rapidly, up 43% a year for the past five years.

Unfortunately ICICI Securities has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

To Sum It Up

Has ICICI Securities got what it takes to maintain its dividend payments? Earnings per share are growing nicely, and ICICI Securities is paying out a percentage of its earnings that is around the average for dividend-paying stocks. In summary, ICICI Securities appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

Keen to explore more data on ICICI Securities's financial performance? Check out our visualisation of its historical revenue and earnings growth.

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.