Iyogin HoldingsInc (TSE:5830) Is Increasing Its Dividend To ¥20.00

Iyogin Holdings,Inc. (TSE:5830) will increase its dividend from last year's comparable payment on the 10th of June to ¥20.00. Although the dividend is now higher, the yield is only 1.8%, which is below the industry average.

View our latest analysis for Iyogin HoldingsInc

Iyogin HoldingsInc's Payment Expected To Have Solid Earnings Coverage

If it is predictable over a long period, even low dividend yields can be attractive.

Having distributed dividends for at least 10 years, Iyogin HoldingsInc has a long history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, Iyogin HoldingsInc's latest earnings report puts its payout ratio at 19%, showing that the company can pay out its dividends comfortably.

Looking forward, earnings per share is forecast to rise by 0.2% over the next year. If the dividend continues along recent trends, we estimate the future payout ratio will be 32%, which is in the range that makes us comfortable with the sustainability of the dividend.

Iyogin HoldingsInc Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2014, the annual payment back then was ¥10.00, compared to the most recent full-year payment of ¥20.00. This means that it has been growing its distributions at 7.2% 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 Has Growth Potential

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Iyogin HoldingsInc has grown earnings per share at 9.6% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Iyogin HoldingsInc Looks Like A Great Dividend Stock

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

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. Taking the debate a bit further, we've identified 1 warning sign for Iyogin HoldingsInc that investors need to be conscious of moving forward. If you are a dividend investor, you might also want to look at our curated 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.