Softcreate Holdings (TSE:3371) Has Announced A Dividend Of ¥31.00
The board of Softcreate Holdings Corp. (TSE:3371) has announced that it will pay a dividend on the 5th of June, with investors receiving ¥31.00 per share. This takes the dividend yield to 3.0%, which shareholders will be pleased with.
Softcreate Holdings' Payment Could Potentially Have Solid Earnings Coverage
Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Before making this announcement, Softcreate Holdings was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.
If the trend of the last few years continues, EPS will grow by 17.8% over the next 12 months. Assuming the dividend continues along recent trends, we think the payout ratio could be 43% by next year, which is in a pretty sustainable range.
Check out our latest analysis for Softcreate Holdings
Softcreate Holdings Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. The dividend has gone from an annual total of ¥10.00 in 2015 to the most recent total annual payment of ¥62.00. This implies that the company grew its distributions at a yearly rate of about 20% over that duration. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. Softcreate Holdings has impressed us by growing EPS at 18% per year over the past five years. Softcreate Holdings definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
We Really Like Softcreate Holdings' Dividend
Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. See if management have their own wealth at stake, by checking insider shareholdings in Softcreate Holdings stock. Is Softcreate Holdings not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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