Financial Partners Group Co.,Ltd. (TSE:7148) Looks Interesting, And It's About To Pay A Dividend

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Financial Partners Group Co.,Ltd. (TSE:7148) is about to trade ex-dividend in the next three days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Accordingly, Financial Partners GroupLtd investors that purchase the stock on or after the 29th of September will not receive the dividend, which will be paid on the 23rd of December.

The company's upcoming dividend is JP¥65.20 a share, following on from the last 12 months, when the company distributed a total of JP¥130 per share to shareholders. Calculating the last year's worth of payments shows that Financial Partners GroupLtd has a trailing yield of 5.3% on the current share price of JP¥2449.00. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Financial Partners GroupLtd has been able to grow its dividends, or if the dividend might be cut.

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If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Financial Partners GroupLtd is paying out an acceptable 70% of its profit, a common payout level among most companies.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Check out our latest analysis for Financial Partners GroupLtd

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

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. Fortunately for readers, Financial Partners GroupLtd's earnings per share have been growing at 13% a year for the past five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Financial Partners GroupLtd has delivered an average of 29% per year annual increase in its dividend, based on the past 10 years of dividend payments. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

To Sum It Up

Is Financial Partners GroupLtd worth buying for its dividend? Earnings per share are growing at an attractive rate, and Financial Partners GroupLtd is paying out a bit over half its profits. Financial Partners GroupLtd ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.

In light of that, while Financial Partners GroupLtd has an appealing dividend, it's worth knowing the risks involved with this stock. Be aware that Financial Partners GroupLtd is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

If you're in the market for strong dividend payers, we recommend checking 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.