Could Tata Coffee Limited (NSE:TATACOFFEE) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Unfortunately, it’s common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments.

A 1.2% yield is nothing to get excited about, but investors probably think the long payment history suggests Tata Coffee has some staying power. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we’ll go through this below.

Click the interactive chart for our full dividend analysis

NSEI:TATACOFFEE Historic Dividend March 8th 2021

Payout ratios

Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable – hardly an ideal situation. So we need to form a view on if a company’s dividend is sustainable, relative to…



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