Tokyo Kiraboshi Financial Group (TSE:7173) Is Due To Pay A Dividend Of ¥85.00

Tokyo Kiraboshi Financial Group, Inc. (TSE:7173) has announced that it will pay a dividend of ¥85.00 per share on the 3rd of December. This takes the annual payment to 2.4% of the current stock price, which unfortunately is below what the industry is paying.

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Tokyo Kiraboshi Financial Group's Dividend Forecasted To Be Well Covered By Earnings

Even a low dividend yield can be attractive if it is sustained for years on end.

Having distributed dividends for at least 10 years, Tokyo Kiraboshi Financial Group has a long history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, Tokyo Kiraboshi Financial Group's latest earnings report puts its payout ratio at 16%, showing that the company can pay out its dividends comfortably.

Looking forward, earnings per share could rise by 36.7% over the next year if the trend from the last few years continues. Assuming the dividend continues along recent trends, we think the future payout ratio could be 14% by next year, which is in a pretty sustainable range.

View our latest analysis for Tokyo Kiraboshi Financial Group

Tokyo Kiraboshi Financial Group Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2015, the dividend has gone from ¥60.00 total annually to ¥170.00. This means that it has been growing its distributions at 11% per annum over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that Tokyo Kiraboshi Financial Group has been growing its earnings per share at 37% 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.

Tokyo Kiraboshi Financial Group Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Tokyo Kiraboshi Financial Group is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. See if management have their own wealth at stake, by checking insider shareholdings in Tokyo Kiraboshi Financial Group stock. Is Tokyo Kiraboshi Financial Group not quite the opportunity you were looking for? Why not check out our selection of top 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.