Aeon Delight (TSE:9787) Is Paying Out A Larger Dividend Than Last Year

Aeon Delight Co., Ltd. (TSE:9787) has announced that it will be increasing its dividend from last year's comparable payment on the 7th of May to ¥44.00. This makes the dividend yield about the same as the industry average at 2.0%.

See our latest analysis for Aeon Delight

Aeon Delight's Projected Earnings Seem Likely To Cover Future Distributions

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. The last dividend was quite easily covered by Aeon Delight's earnings. This means that a large portion of its earnings are being retained to grow the business.

The next year is set to see EPS grow by 0.5%. If the dividend continues on this path, the payout ratio could be 41% by next year, which we think can be pretty sustainable going forward.

Aeon Delight 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 ¥48.00, compared to the most recent full-year payment of ¥88.00. This means that it has been growing its distributions at 6.2% per annum over that time. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.

We Could See Aeon Delight's Dividend Growing

The company's investors will be pleased to have been receiving dividend income for some time. Aeon Delight has impressed us by growing EPS at 5.5% per year over the past five years. Since earnings per share is growing at an acceptable rate, and the payout policy is balanced, we think the company is positioning itself well to grow earnings and dividends in the future.

Aeon Delight Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Aeon Delight is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Now, if you want to look closer, it would be worth checking out our free research on Aeon Delight management tenure, salary, and performance. Is Aeon Delight not quite the opportunity you were looking for? Why not check out our selection of top 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.