TOMONY Holdings (TSE:8600) Is Due To Pay A Dividend Of ¥13.00

The board of TOMONY Holdings, Inc. (TSE:8600) has announced that it will pay a dividend on the 26th of June, with investors receiving ¥13.00 per share. Based on this payment, the dividend yield for the company will be 3.4%, which is fairly typical for the industry.

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TOMONY Holdings' Payment Expected To Have Solid Earnings Coverage

We aren't too impressed by dividend yields unless they can be sustained over time.

Having distributed dividends for at least 10 years, TOMONY Holdings has a long history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, TOMONY Holdings' latest earnings report puts its payout ratio at 14%, showing that the company can pay out its dividends comfortably.

Looking forward, earnings per share could rise by 9.7% over the next year if the trend from the last few years continues. If the dividend continues on this path, the future payout ratio could be 37% by next year, which we think can be pretty sustainable going forward.

Check out our latest analysis for TOMONY Holdings

TOMONY Holdings Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was ¥8.00 in 2015, and the most recent fiscal year payment was ¥26.00. This means that it has been growing its distributions at 13% 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.

TOMONY Holdings Could Grow Its Dividend

The company's investors will be pleased to have been receiving dividend income for some time. TOMONY Holdings has seen EPS rising for the last five years, at 9.7% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

We Really Like TOMONY Holdings' Dividend

Overall, a dividend increase is always good, and we think that TOMONY Holdings is a strong income stock thanks to its track record and growing earnings. 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.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. See if management have their own wealth at stake, by checking insider shareholdings in TOMONY Holdings stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.