Four Days Left To Buy KeyHolder, Inc. (TYO:4712) Before The Ex-Dividend Date

It looks like KeyHolder, Inc. (TYO:4712) is about to go ex-dividend in the next four days. This means that investors who purchase shares on or after the 29th of December will not receive the dividend, which will be paid on the 26th of March.

KeyHolder's next dividend payment will be JP¥10.00 per share, and in the last 12 months, the company paid a total of JP¥10.00 per share. Calculating the last year's worth of payments shows that KeyHolder has a trailing yield of 1.0% on the current share price of ¥983. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether KeyHolder can afford its dividend, and if the dividend could grow.

Check out our latest analysis for KeyHolder

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. KeyHolder reported a loss last year, so it's not great to see that it has continued paying a dividend.

Click here to see how much of its profit KeyHolder paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. KeyHolder was unprofitable last year, but at least the general trend suggests its earnings have been improving over the past five years. Even so, an unprofitable company whose business does not quickly recover is usually not a good candidate for dividend investors.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. KeyHolder's dividend payments per share have declined at 12% per year on average over the past 10 years, which is uninspiring.

Remember, you can always get a snapshot of KeyHolder's financial health, by checking our visualisation of its financial health, here.

The Bottom Line

Is KeyHolder worth buying for its dividend? It doesn't appear an outstanding opportunity, but could be worth a closer look.

If you want to look further into KeyHolder, it's worth knowing the risks this business faces. We've identified 4 warning signs with KeyHolder (at least 1 which makes us a bit uncomfortable), and understanding these should be part of your investment process.

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

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This article by Simply Wall St is general in nature. 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.
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