Here's What We Like About Aizawa Securities Group's (TSE:8708) Upcoming 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 Aizawa Securities Group Co., Ltd. (TSE:8708) 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 because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Thus, you can purchase Aizawa Securities Group's shares before the 27th of September in order to receive the dividend, which the company will pay on the 2nd of December.

The company's next dividend payment will be JP¥48.00 per share. Last year, in total, the company distributed JP¥52.00 to shareholders. Based on the last year's worth of payments, Aizawa Securities Group has a trailing yield of 2.9% on the current stock price of JP¥1811.00. If you buy this business for its dividend, you should have an idea of whether Aizawa Securities Group's dividend is reliable and sustainable. As a result, readers should always check whether Aizawa Securities Group has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Aizawa Securities Group

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately Aizawa Securities Group's payout ratio is modest, at just 47% of profit.

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 how much of its profit Aizawa Securities Group 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 earnings fall far enough, the company could be forced to cut its dividend. It's encouraging to see Aizawa Securities Group has grown its earnings rapidly, up 77% a year 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. In the last 10 years, Aizawa Securities Group has lifted its dividend by approximately 2.7% a year on average. Earnings per share have been growing much quicker than dividends, potentially because Aizawa Securities Group is keeping back more of its profits to grow the business.

Final Takeaway

Is Aizawa Securities Group worth buying for its dividend? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the 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.

On that note, you'll want to research what risks Aizawa Securities Group is facing. For example, Aizawa Securities Group has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield 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.