Fukushima GalileiLtd (TSE:6420) Has Announced A Dividend Of ¥105.00

Fukushima Galilei Co.Ltd. (TSE:6420) will pay a dividend of ¥105.00 on the 27th of June. This means the dividend yield will be fairly typical at 1.8%.

See our latest analysis for Fukushima GalileiLtd

Fukushima GalileiLtd's Payment Could Potentially Have Solid Earnings Coverage

Unless the payments are sustainable, the dividend yield doesn't mean too much. However, Fukushima GalileiLtd's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

EPS is set to fall by 2.1% over the next 12 months. Assuming the dividend continues along recent trends, we believe the payout ratio could be 20%, which we are pretty comfortable with and we think is feasible on an earnings basis.

Fukushima GalileiLtd Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2014, the annual payment back then was ¥18.00, compared to the most recent full-year payment of ¥105.00. This implies that the company grew its distributions at a yearly rate of about 19% over that duration. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Fukushima GalileiLtd has seen EPS rising for the last five years, at 14% 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 Fukushima GalileiLtd's Dividend

Overall, we like to see the dividend staying consistent, and we think Fukushima GalileiLtd might even raise payments in the future. The company is generating plenty of cash, and the earnings also quite easily cover the distributions. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. All of these factors considered, we think this has solid potential as a dividend stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for Fukushima GalileiLtd that investors should take into consideration. Is Fukushima GalileiLtd not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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