Miahelsa Holdings Corporation (TSE:7129) Will Pay A JP¥13.00 Dividend In Four Days
Miahelsa Holdings Corporation (TSE:7129) is about to trade ex-dividend in the next 4 days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, Miahelsa Holdings investors that purchase the stock on or after the 29th of September will not receive the dividend, which will be paid on the 4th of December.
The company's next dividend payment will be JP¥13.00 per share, and in the last 12 months, the company paid a total of JP¥30.00 per share. Calculating the last year's worth of payments shows that Miahelsa Holdings has a trailing yield of 2.6% on the current share price of JP¥1169.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. That's why it's good to see Miahelsa Holdings paying out a modest 47% of its earnings. A useful secondary check can be to evaluate whether Miahelsa Holdings generated enough free cash flow to afford its dividend. It paid out 16% of its free cash flow as dividends last year, which is conservatively low.
It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.
Check out our latest analysis for Miahelsa Holdings
Click here to see how much of its profit Miahelsa Holdings paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. Miahelsa Holdings's earnings per share have fallen at approximately 12% a year over the previous five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the last six years, Miahelsa Holdings has lifted its dividend by approximately 7.0% a year on average.
The Bottom Line
Has Miahelsa Holdings got what it takes to maintain its dividend payments? Earnings per share are down meaningfully, although at least the company is paying out a low and conservative percentage of both its earnings and cash flow. It's definitely not great to see earnings falling, but at least there may be some buffer before the dividend needs to be cut. While it does have some good things going for it, we're a bit ambivalent and it would take more to convince us of Miahelsa Holdings's dividend merits.
With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. For example, Miahelsa Holdings has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.