Yamaguchi Financial Group (TSE:8418) Will Pay A Dividend Of ¥30.00

The board of Yamaguchi Financial Group, Inc. (TSE:8418) has announced that it will pay a dividend on the 30th of June, with investors receiving ¥30.00 per share. This makes the dividend yield about the same as the industry average at 3.7%.

See our latest analysis for Yamaguchi Financial Group

Yamaguchi Financial Group'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.

Yamaguchi Financial Group 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, Yamaguchi Financial Group's payout ratio sits at 17%, an extremely comfortable number that shows that it can pay its dividend.

Over the next year, EPS is forecast to expand by 17.9%. If the dividend continues along recent trends, we estimate the future payout ratio will be 43%, which is in the range that makes us comfortable with the sustainability of the dividend.

Yamaguchi Financial Group Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was ¥14.00 in 2014, and the most recent fiscal year payment was ¥60.00. This means that it has been growing its distributions at 16% per annum over that time. 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.

Yamaguchi Financial Group Could Grow Its Dividend

Investors could be attracted to the stock based on the quality of its payment history. Yamaguchi Financial Group has impressed us by growing EPS at 7.5% per year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.

We Really Like Yamaguchi Financial Group'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. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Are management backing themselves to deliver performance? Check their shareholdings in Yamaguchi Financial Group in our latest insider ownership analysis. Is Yamaguchi 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.