SKY Perfect JSAT Holdings (TSE:9412) Has Announced A Dividend Of ¥19.00
SKY Perfect JSAT Holdings Inc.'s (TSE:9412) investors are due to receive a payment of ¥19.00 per share on 5th of June. This makes the dividend yield about the same as the industry average at 1.9%.
While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that SKY Perfect JSAT Holdings' stock price has increased by 51% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.
SKY Perfect JSAT Holdings' Future Dividend Projections Appear Well Covered By Earnings
Solid dividend yields are great, but they only really help us if the payment is sustainable. Prior to this announcement, SKY Perfect JSAT Holdings was quite comfortably covering its dividend with earnings and it was paying more than 75% of its free cash flow to shareholders. The company is clearly earning enough to pay this type of dividend, but it is definitely focused on returning cash to shareholders, rather than growing the business.
Over the next year, EPS is forecast to expand by 9.4%. If the dividend continues on this path, the payout ratio could be 49% by next year, which we think can be pretty sustainable going forward.
View our latest analysis for SKY Perfect JSAT Holdings
SKY Perfect JSAT Holdings Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was ¥12.00 in 2015, and the most recent fiscal year payment was ¥38.00. This means that it has been growing its distributions at 12% per annum over that time. 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.
We Could See SKY Perfect JSAT Holdings' Dividend Growing
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. We are encouraged to see that SKY Perfect JSAT Holdings has grown earnings per share at 9.7% per year over the past five years. Shareholders are getting plenty of the earnings returned to them, which combined with strong growth makes this quite appealing.
Our Thoughts On SKY Perfect JSAT Holdings' Dividend
In summary, it's great to see that the company can raise the dividend and keep it in a sustainable range. On the plus side, the dividend looks sustainable by most measures but it is let down by the lack of cash flows. This looks like it could be a good dividend stock going forward, but we would note that the payout ratio has been at higher levels in the past so it could happen again.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've picked out 1 warning sign for SKY Perfect JSAT Holdings that investors should know about before committing capital to this stock. Is SKY Perfect JSAT Holdings not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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