CREEK & RIVER (TSE:4763) Will Pay A Larger Dividend Than Last Year At ¥43.00

CREEK & RIVER Co., Ltd. (TSE:4763) will increase its dividend from last year's comparable payment on the 30th of May to ¥43.00. This takes the dividend yield to 2.7%, which shareholders will be pleased with.

View our latest analysis for CREEK & RIVER

CREEK & RIVER's Payment Could Potentially Have Solid Earnings Coverage

If the payments aren't sustainable, a high yield for a few years won't matter that much. Before making this announcement, CREEK & RIVER 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 17.0%. If the dividend continues along recent trends, we estimate the payout ratio will be 38%, which is in the range that makes us comfortable with the sustainability of the dividend.

CREEK & RIVER Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2014, the annual payment back then was ¥6.00, compared to the most recent full-year payment of ¥43.00. This implies that the company grew its distributions at a yearly rate of about 22% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. CREEK & RIVER has impressed us by growing EPS at 19% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for CREEK & RIVER's prospects of growing its dividend payments in the future.

CREEK & RIVER Looks Like A Great Dividend Stock

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

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. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 3 analysts we track are forecasting for CREEK & RIVER for free with public analyst estimates for the company. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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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.