Be Sure To Check Out M&A Capital Partners Co.,Ltd. (TSE:6080) Before It Goes Ex-Dividend

Readers hoping to buy M&A Capital Partners Co.,Ltd. (TSE:6080) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. In other words, investors can purchase M&A Capital PartnersLtd's shares before the 27th of September in order to be eligible for the dividend, which will be paid on the 26th of December.

The company's next dividend payment will be JP¥40.00 per share. Last year, in total, the company distributed JP¥40.00 to shareholders. Last year's total dividend payments show that M&A Capital PartnersLtd has a trailing yield of 1.9% on the current share price of JP¥2150.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

View our latest analysis for M&A Capital PartnersLtd

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. That's why it's good to see M&A Capital PartnersLtd paying out a modest 43% of its earnings.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it's a relief to see M&A Capital PartnersLtd earnings per share are up 6.5% per annum over the last five years.

Unfortunately M&A Capital PartnersLtd has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

To Sum It Up

Is M&A Capital PartnersLtd worth buying for its dividend? M&A Capital PartnersLtd has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. We think this is a pretty attractive combination, and would be interested in investigating M&A Capital PartnersLtd more closely.

So while M&A Capital PartnersLtd looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. For example, we've found 1 warning sign for M&A Capital PartnersLtd that we recommend you consider before investing in the business.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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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.