Yamae Group HoldingsLtd (TSE:7130) Has Affirmed Its Dividend Of ¥70.00
The board of Yamae Group Holdings Co.,Ltd. (TSE:7130) has announced that it will pay a dividend of ¥70.00 per share on the 23rd of June. This makes the dividend yield 2.7%, which will augment investor returns quite nicely.
Yamae Group HoldingsLtd's Future Dividend Projections Appear Well Covered By Earnings
Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, Yamae Group HoldingsLtd's earnings easily 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 could expand by 31.9% if recent trends continue. If the dividend continues on this path, the payout ratio could be 23% by next year, which we think can be pretty sustainable going forward.
Check out our latest analysis for Yamae Group HoldingsLtd
Yamae Group HoldingsLtd 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 2016, the annual payment back then was ¥10.00, compared to the most recent full-year payment of ¥70.00. This implies that the company grew its distributions at a yearly rate of about 21% 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
The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that Yamae Group HoldingsLtd has been growing its earnings per share at 32% a year over the past five years. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend.
We Really Like Yamae Group HoldingsLtd's Dividend
Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Yamae Group HoldingsLtd that investors should take into consideration. Is Yamae Group HoldingsLtd not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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