Yamanashi Chuo BankLtd (TSE:8360) Has Announced A Dividend Of ¥32.00

The Yamanashi Chuo Bank,Ltd. (TSE:8360) has announced that it will pay a dividend of ¥32.00 per share on the 26th of June. The payment will take the dividend yield to 3.4%, which is in line with the average for the industry.

View our latest analysis for Yamanashi Chuo BankLtd

Yamanashi Chuo BankLtd's Earnings Will Easily Cover The Distributions

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue.

Yamanashi Chuo BankLtd has a long history of paying out dividends, with its current track record at a minimum of 10 years. Using data from its latest earnings report, Yamanashi Chuo BankLtd's payout ratio sits at 16%, an extremely comfortable number that shows that it can pay its dividend.

Over the next year, EPS could expand by 8.0% if recent trends continue. Assuming the dividend continues along recent trends, we think the future payout ratio could be 31% by next year, which is in a pretty sustainable range.

Dividend Volatility

The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2014, the annual payment back then was ¥30.00, compared to the most recent full-year payment of ¥64.00. This implies that the company grew its distributions at a yearly rate of about 7.9% over that duration. We have seen cuts in the past, so while the growth looks promising we would be a little bit cautious about its track record.

Yamanashi Chuo BankLtd Could Grow Its Dividend

With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. We are encouraged to see that Yamanashi Chuo BankLtd has grown earnings per share at 8.0% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Yamanashi Chuo BankLtd's prospects of growing its dividend payments in the future.

We Really Like Yamanashi Chuo BankLtd's Dividend

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. 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. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for Yamanashi Chuo BankLtd that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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