Be Sure To Check Out Aizawa Securities Group Co., Ltd. (TSE:8708) Before It Goes Ex-Dividend

Readers hoping to buy Aizawa Securities Group Co., Ltd. (TSE:8708) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date generally occurs two days 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 an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Therefore, if you purchase Aizawa Securities Group's shares on or after the 28th of March, you won't be eligible to receive the dividend, when it is paid on the 6th of June.

The company's next dividend payment will be JP¥70.00 per share, and in the last 12 months, the company paid a total of JP¥39.00 per share. Looking at the last 12 months of distributions, Aizawa Securities Group has a trailing yield of approximately 2.3% on its current stock price of JP¥1700.00. 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! We need to see whether the dividend is covered by earnings and if it's growing.

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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. Aizawa Securities Group has a low and conservative payout ratio of just 19% of its income after tax.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

Check out our latest analysis for Aizawa Securities Group

Click here to see how much of its profit Aizawa Securities Group 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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see Aizawa Securities Group's earnings have been skyrocketing, up 92% per annum for the past five years.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Aizawa Securities Group's dividend payments are effectively flat on where they were 10 years ago.

To Sum It Up

Should investors buy Aizawa Securities Group for the upcoming dividend? Companies like Aizawa Securities Group that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. This strategy can add significant value to shareholders over the long term - as long as it's done without issuing too many new shares. We think this is a pretty attractive combination, and would be interested in investigating Aizawa Securities Group more closely.

So while Aizawa Securities Group looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. To that end, you should learn about the 3 warning signs we've spotted with Aizawa Securities Group (including 1 which can't be ignored).

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.