Ebara JitsugyoLtd (TSE:6328) Has Announced A Dividend Of ¥47.50

The board of Ebara Jitsugyo Co.,Ltd. (TSE:6328) has announced that it will pay a dividend of ¥47.50 per share on the 27th of March. This makes the dividend yield about the same as the industry average at 2.3%.

Check out our latest analysis for Ebara JitsugyoLtd

Ebara JitsugyoLtd's Payment Could Potentially Have Solid Earnings Coverage

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. Before making this announcement, Ebara JitsugyoLtd was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

Over the next year, EPS is forecast to expand by 8.2%. If the dividend continues on this path, the payout ratio could be 39% by next year, which we think can be pretty sustainable going forward.

Ebara JitsugyoLtd Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The annual payment during the last 10 years was ¥20.00 in 2014, and the most recent fiscal year payment was ¥95.00. This works out to be a compound annual growth rate (CAGR) of approximately 17% a year 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.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Ebara JitsugyoLtd has grown earnings per share at 19% per year over the past five years. Ebara JitsugyoLtd definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Ebara JitsugyoLtd Looks Like A Great Dividend Stock

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 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. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Are management backing themselves to deliver performance? Check their shareholdings in Ebara JitsugyoLtd in our latest insider ownership analysis. Is Ebara JitsugyoLtd not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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