Why You Might Be Interested In Financial Partners Group Co.,Ltd. (TSE:7148) For Its Upcoming Dividend
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Financial Partners Group Co.,Ltd. (TSE:7148) is about to trade ex-dividend in the next two days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase Financial Partners GroupLtd's shares on or after the 29th of September, you won't be eligible to receive the dividend, when it is paid on the 24th of December.
The company's next dividend payment will be JP¥46.35 per share, and in the last 12 months, the company paid a total of JP¥92.70 per share. Based on the last year's worth of payments, Financial Partners GroupLtd has a trailing yield of 5.4% on the current stock price of JP¥1710.00. If you buy this business for its dividend, you should have an idea of whether Financial Partners GroupLtd's dividend is reliable and sustainable. As a result, readers should always check whether Financial Partners GroupLtd has been able to grow its dividends, or if the dividend might be cut.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Fortunately Financial Partners GroupLtd's payout ratio is modest, at just 33% of profit.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
Check out our latest analysis for Financial Partners GroupLtd
Click here to see how much of its profit Financial Partners GroupLtd paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That's why it's comforting to see Financial Partners GroupLtd's earnings have been skyrocketing, up 72% per annum for the past five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past 10 years, Financial Partners GroupLtd has increased its dividend at approximately 13% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.
To Sum It Up
Is Financial Partners GroupLtd an attractive dividend stock, or better left on the shelf? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. Financial Partners GroupLtd ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.
In light of that, while Financial Partners GroupLtd has an appealing dividend, it's worth knowing the risks involved with this stock. For example, we've found 2 warning signs for Financial Partners GroupLtd that we recommend you consider before investing in the business.
Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.
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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.