Chugin Financial GroupInc (TSE:5832) Is Due To Pay A Dividend Of ¥29.50

Chugin Financial Group,Inc.'s (TSE:5832) investors are due to receive a payment of ¥29.50 per share on 27th of June. The dividend yield will be in the average range for the industry at 3.2%.

Chugin Financial GroupInc's Dividend Forecasted To Be Well Covered By Earnings

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important.

Chugin Financial GroupInc has a long history of paying out dividends, with its current track record at a minimum of 10 years. Taking data from its last earnings report, calculating for the company's payout ratio shows 45%, which means that Chugin Financial GroupInc would be able to pay its last dividend without pressure on the balance sheet.

Over the next year, EPS is forecast to expand by 18.5%. If the dividend continues along recent trends, we estimate the future payout ratio will be 39%, which is in the range that makes us comfortable with the sustainability of the dividend.

See our latest analysis for Chugin Financial GroupInc

Chugin Financial GroupInc 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. The annual payment during the last 10 years was ¥16.00 in 2015, and the most recent fiscal year payment was ¥56.00. This implies that the company grew its distributions at a yearly rate of about 13% 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.

Chugin Financial GroupInc Could Grow Its Dividend

The company's investors will be pleased to have been receiving dividend income for some time. Chugin Financial GroupInc has impressed us by growing EPS at 9.9% per year over the past five years. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock.

We Really Like Chugin Financial GroupInc's Dividend

It is generally not great to see the dividend being cut, but we don't think this should happen much if at all in the future given that Chugin Financial GroupInc has the makings of a solid income stock moving forward. The cut will allow the company to continue paying out the dividend without putting the balance sheet under pressure, which means that it could remain sustainable for longer. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Are management backing themselves to deliver performance? Check their shareholdings in Chugin Financial GroupInc in our latest insider ownership analysis. Looking for more high-yielding dividend ideas? Try our collection of 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.