San ju San Financial GroupInc (TSE:7322) Is Paying Out A Larger Dividend Than Last Year

San ju San Financial Group,Inc. (TSE:7322) will increase its dividend from last year's comparable payment on the 24th of June to ¥57.00. This will take the annual payment to 4.2% of the stock price, which is above what most companies in the industry pay.

While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that San ju San Financial GroupInc's stock price has increased by 36% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.

View our latest analysis for San ju San Financial GroupInc

San ju San Financial GroupInc's Payment Expected To Have Solid Earnings Coverage

A big dividend yield for a few years doesn't mean much if it can't be sustained.

San ju San Financial GroupInc has a good history of paying out dividends, with its current track record at 6 years. Based on San ju San Financial GroupInc's last earnings report, the payout ratio is at a decent 27%, meaning that the company is able to pay out its dividend with a bit of room to spare.

Looking forward, earnings per share could rise by 9.4% over the next year if the trend from the last few years continues. If the dividend continues along recent trends, we estimate the future payout ratio will be 29%, which is in the range that makes us comfortable with the sustainability of the dividend.

San ju San Financial GroupInc Is Still Building Its Track Record

San ju San Financial GroupInc's dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. Since 2019, the dividend has gone from ¥72.00 total annually to ¥94.00. This works out to be a compound annual growth rate (CAGR) of approximately 4.5% a year over that time. San ju San Financial GroupInc hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.

We Could See San ju San Financial GroupInc's Dividend Growing

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. San ju San Financial GroupInc has impressed us by growing EPS at 9.4% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for San ju San Financial GroupInc's prospects of growing its dividend payments in the future.

We Really Like San ju San Financial GroupInc's Dividend

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. Taking this all into consideration, this looks like it could be a good dividend opportunity.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in San ju San Financial GroupInc stock. Is San ju San Financial GroupInc 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.