Financial Partners Group Co.,Ltd. (TSE:7148) Passed Our Checks, And It's About To Pay A JP¥67.10 Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Financial Partners Group Co.,Ltd. (TSE:7148) is about to go ex-dividend in just 3 days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible 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. Accordingly, Financial Partners GroupLtd investors that purchase the stock on or after the 27th of September will not receive the dividend, which will be paid on the 25th of December.

The company's next dividend payment will be JP¥67.10 per share, on the back of last year when the company paid a total of JP¥106 to shareholders. Last year's total dividend payments show that Financial Partners GroupLtd has a trailing yield of 4.5% on the current share price of JP¥2352.00. If you buy this business for its dividend, you should have an idea of whether Financial Partners GroupLtd's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.

View our latest analysis for Financial Partners GroupLtd

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. Financial Partners GroupLtd paid out 52% of its earnings to investors last year, a normal payout level for most businesses.

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?

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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. For this reason, we're glad to see Financial Partners GroupLtd's earnings per share have risen 17% per annum over the last five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, Financial Partners GroupLtd has increased its dividend at approximately 34% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

Final Takeaway

Has Financial Partners GroupLtd got what it takes to maintain its dividend payments? Earnings per share are growing at an attractive rate, and Financial Partners GroupLtd is paying out a bit over half its profits. We think this is a pretty attractive combination, and would be interested in investigating Financial Partners GroupLtd more closely.

On that note, you'll want to research what risks Financial Partners GroupLtd is facing. In terms of investment risks, we've identified 3 warning signs with Financial Partners GroupLtd and understanding them should be part of your investment process.

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.