Hokuhoku Financial Group (TSE:8377) Has Announced A Dividend Of ¥45.00
Hokuhoku Financial Group, Inc. (TSE:8377) will pay a dividend of ¥45.00 on the 23rd of June. Although the dividend is now higher, the yield is only 2.0%, which is below the industry average.
Hokuhoku Financial Group's Earnings Will Easily Cover The Distributions
If it is predictable over a long period, even low dividend yields can be attractive.
Hokuhoku Financial Group has a long history of paying out dividends, with its current track record at a minimum of 10 years. While past records don't necessarily translate into future results, the company's payout ratio of 23% also shows that Hokuhoku Financial Group is able to comfortably pay dividends.
The next year is set to see EPS grow by 15.6%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 19% by next year, which is in a pretty sustainable range.
Check out our latest analysis for Hokuhoku Financial Group
Hokuhoku Financial Group 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 ¥42.50 in 2015 to the most recent total annual payment of ¥90.00. This means that it has been growing its distributions at 7.8% per annum over that time. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. Hokuhoku Financial Group has seen EPS rising for the last five years, at 22% 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.
Hokuhoku Financial Group Looks Like A Great Dividend Stock
Overall, a dividend increase is always good, and we think that Hokuhoku Financial Group is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.
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. Now, if you want to look closer, it would be worth checking out our free research on Hokuhoku Financial Group management tenure, salary, and performance. Is Hokuhoku Financial Group not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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