TOMONY Holdings' (TSE:8600) Upcoming Dividend Will Be Larger Than Last Year's

The board of TOMONY Holdings, Inc. (TSE:8600) has announced that it will be paying its dividend of ¥13.00 on the 8th of December, an increased payment from last year's comparable dividend. This makes the dividend yield 4.4%, which is above the industry average.

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TOMONY Holdings' Payment Expected To Have Solid Earnings Coverage

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained.

TOMONY Holdings has a long history of paying out dividends, with its current track record at a minimum of 10 years. While past data isn't a guarantee for the future, TOMONY Holdings' latest earnings report puts its payout ratio at 6.0%, showing that the company can pay out its dividends comfortably.

Over the next year, EPS could expand by 10.2% if recent trends continue. If the dividend continues on this path, the future payout ratio could be 25% by next year, which we think can be pretty sustainable going forward.

View 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. Since 2015, the annual payment back then was ¥8.00, compared to the most recent full-year payment of ¥26.00. This implies that the company grew its distributions at a yearly rate of about 13% over that duration. 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.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. TOMONY Holdings has seen EPS rising for the last five years, at 10% per annum. With a decent amount of growth and a low payout ratio, we think this bodes well for TOMONY Holdings' prospects of growing its dividend payments in the future.

TOMONY Holdings Looks Like A Great Dividend Stock

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. 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.

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. Are management backing themselves to deliver performance? Check their shareholdings in TOMONY Holdings in our latest insider ownership analysis. 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.