Hikari Tsushin (TSE:9435) Has Announced A Dividend Of ¥185.00
Hikari Tsushin, Inc. (TSE:9435) will pay a dividend of ¥185.00 on the 16th of March. The payment will take the dividend yield to 1.7%, which is in line with the average for the industry.
Hikari Tsushin's Future Dividend Projections Appear Well Covered By Earnings
We aren't too impressed by dividend yields unless they can be sustained over time. Before making this announcement, Hikari Tsushin was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.
Over the next year, EPS is forecast to expand by 0.6%. If the dividend continues on this path, the payout ratio could be 26% by next year, which we think can be pretty sustainable going forward.
Check out our latest analysis for Hikari Tsushin
Hikari Tsushin Has A Solid Track Record
The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2015, the dividend has gone from ¥160.00 total annually to ¥740.00. This means that it has been growing its distributions at 17% 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.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. Hikari Tsushin has seen EPS rising for the last five years, at 24% per annum. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.
Hikari Tsushin Looks Like A Great Dividend Stock
Overall, a dividend increase is always good, and we think that Hikari Tsushin is a strong income stock thanks to its track record and growing earnings. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for Hikari Tsushin that investors should take into consideration. Is Hikari Tsushin not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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