Open House Group's (TSE:3288) Upcoming Dividend Will Be Larger Than Last Year's

Open House Group Co., Ltd. (TSE:3288) has announced that it will be increasing its dividend from last year's comparable payment on the 12th of June to ¥84.00. This makes the dividend yield 3.3%, which is above the industry average.

View our latest analysis for Open House Group

Open House Group's Future Dividend Projections Appear Well Covered By Earnings

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Before making this announcement, Open House Group was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share is forecast to rise by 4.4% over the next year. If the dividend continues on this path, the payout ratio could be 24% by next year, which we think can be pretty sustainable going forward.

Open House Group Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2015, the dividend has gone from ¥7.50 total annually to ¥168.00. This means that it has been growing its distributions at 36% per annum over that time. 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. It's encouraging to see that Open House Group has been growing its earnings per share at 18% a year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Open House Group's prospects of growing its dividend payments in the future.

Open House Group Looks Like A Great Dividend Stock

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 6 Open House Group analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Open House Group not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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