Yossix HoldingsLtd's (TSE:3221) Dividend Will Be ¥14.00

The board of Yossix Holdings Co.,Ltd. (TSE:3221) has announced that it will pay a dividend on the 1st of December, with investors receiving ¥14.00 per share. The dividend yield will be 1.0% based on this payment which is still above the industry average.

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Yossix HoldingsLtd's Projected Earnings Seem Likely To Cover Future Distributions

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Before making this announcement, Yossix HoldingsLtd was paying a whopping 2,385% as a dividend, but this only made up 17% of its overall earnings. While the business may be attempting to set a balanced dividend policy, a cash payout ratio this high might expose the dividend to being cut if the business ran into some challenges.

The next year is set to see EPS grow by 2.4%. Assuming the dividend continues along recent trends, we think the payout ratio could be 19% by next year, which is in a pretty sustainable range.

View our latest analysis for Yossix HoldingsLtd

Yossix HoldingsLtd Doesn't Have A Long Payment History

The company has maintained a consistent dividend for a few years now, but we would like to see a longer track record before relying on it. Since 2022, the annual payment back then was ¥12.00, compared to the most recent full-year payment of ¥28.00. This means that it has been growing its distributions at 33% per annum over that time. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Yossix HoldingsLtd has impressed us by growing EPS at 21% per year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.

Our Thoughts On Yossix HoldingsLtd's Dividend

In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Yossix HoldingsLtd's payments, as there could be some issues with sustaining them into the future. With cash flows lacking, it is difficult to see how the company can sustain a dividend payment. We would be a touch cautious of relying on this stock primarily for the dividend income.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. See if management have their own wealth at stake, by checking insider shareholdings in Yossix HoldingsLtd stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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