NIPPON KANZAI HoldingsLtd (TSE:9347) Is Due To Pay A Dividend Of ¥27.00

NIPPON KANZAI Holdings Co.,Ltd.'s (TSE:9347) investors are due to receive a payment of ¥27.00 per share on 4th of December. This means the dividend yield will be fairly typical at 2.1%.

Check out our latest analysis for NIPPON KANZAI HoldingsLtd

NIPPON KANZAI HoldingsLtd's Earnings Easily Cover The Distributions

We aren't too impressed by dividend yields unless they can be sustained over time. However, NIPPON KANZAI HoldingsLtd's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

Looking forward, earnings per share could rise by 4.2% over the next year if the trend from the last few years continues. Assuming the dividend continues along recent trends, we think the payout ratio could be 37% by next year, which is in a pretty sustainable range.

NIPPON KANZAI HoldingsLtd Has A Solid Track Record

The company has an extended history of paying stable dividends. The dividend has gone from an annual total of ¥20.00 in 2014 to the most recent total annual payment of ¥54.00. This implies that the company grew its distributions at a yearly rate of about 10% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

The Dividend's Growth Prospects Are Limited

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Earnings has been rising at 4.2% per annum over the last five years, which admittedly is a bit slow. If NIPPON KANZAI HoldingsLtd is struggling to find viable investments, it always has the option to increase its payout ratio to pay more to shareholders.

We Really Like NIPPON KANZAI HoldingsLtd's Dividend

Overall, we like to see the dividend staying consistent, and we think NIPPON KANZAI HoldingsLtd might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. See if management have their own wealth at stake, by checking insider shareholdings in NIPPON KANZAI HoldingsLtd stock. 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.