Tsukuba Bank (TSE:8338) Is Paying Out A Dividend Of ¥5.00

Tsukuba Bank, Ltd.'s (TSE:8338) investors are due to receive a payment of ¥5.00 per share on 6th of June. This means the annual payment will be 2.1% of the current stock price, which is lower than the industry average.

View our latest analysis for Tsukuba Bank

Tsukuba Bank's Earnings Will Easily Cover The Distributions

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

Having distributed dividends for at least 10 years, Tsukuba Bank has a long history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, Tsukuba Bank's latest earnings report puts its payout ratio at 20%, showing that the company can pay out its dividends comfortably.

Over the next year, EPS could expand by 11.4% if recent trends continue. If the dividend continues on this path, the future payout ratio could be 18% by next year, which we think can be pretty sustainable going forward.

Tsukuba Bank Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The payments haven't really changed that much since 10 years ago. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.

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. We are encouraged to see that Tsukuba Bank has grown earnings per share at 11% per year over the past five years. Tsukuba Bank definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like Tsukuba Bank's Dividend

Overall, we like to see the dividend staying consistent, and we think Tsukuba Bank might even raise payments in the future. 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. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Are management backing themselves to deliver performance? Check their shareholdings in Tsukuba Bank in our latest insider ownership analysis. Is Tsukuba Bank 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.