MINEBEA MITSUMI (TSE:6479) Has Announced A Dividend Of ¥20.00

MINEBEA MITSUMI Inc. (TSE:6479) will pay a dividend of ¥20.00 on the 29th of November. The dividend yield is 1.5% based on this payment, which is a little bit low compared to the other companies in the industry.

See our latest analysis for MINEBEA MITSUMI

MINEBEA MITSUMI's Payment Could Potentially Have Solid Earnings Coverage

If it is predictable over a long period, even low dividend yields can be attractive. However, based ont he last payment, MINEBEA MITSUMI was earning enough to cover the dividend pretty comfortably. The business is returning a large chunk of its cash to shareholders, which means it is not being used to grow the business.

Over the next year, EPS is forecast to expand by 2.0%. If the dividend continues on this path, the payout ratio could be 28% by next year, which we think can be pretty sustainable going forward.

Dividend Volatility

Although the company has a long dividend history, it has been cut at least once in the last 10 years. The dividend has gone from an annual total of ¥8.00 in 2014 to the most recent total annual payment of ¥40.00. This means that it has been growing its distributions at 17% per annum over that time. Dividends have grown rapidly over this time, but with cuts in the past we are not certain that this stock will be a reliable source of income in the future.

MINEBEA MITSUMI Could Grow Its Dividend

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. MINEBEA MITSUMI has impressed us by growing EPS at 5.0% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for MINEBEA MITSUMI's prospects of growing its dividend payments in the future.

Our Thoughts On MINEBEA MITSUMI's Dividend

Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. While MINEBEA MITSUMI is earning enough to cover the dividend, we are generally unimpressed with its future prospects. We would probably look elsewhere for an income investment.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 14 analysts we track are forecasting for MINEBEA MITSUMI for free with public analyst estimates for the company. Is MINEBEA MITSUMI not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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