DyDo Group Holdings (TSE:2590) Has Announced A Dividend Of ¥15.00

The board of DyDo Group Holdings, Inc. (TSE:2590) has announced that it will pay a dividend on the 16th of April, with investors receiving ¥15.00 per share. This payment takes the dividend yield to 1.2%, which only provides a modest boost to overall returns.

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DyDo Group Holdings' Distributions May Be Difficult To Sustain

Even a low dividend yield can be attractive if it is sustained for years on end. Despite not generating a profit, DyDo Group Holdings is still paying a dividend. The company is also yet to generate cash flow, so the dividend sustainability is definitely questionable.

Over the next year, EPS is forecast to expand by 70.0%. While it is good to see income moving in the right direction, it still looks like the company won't achieve profitability. Unless this can be done in short order, the dividend might be difficult to sustain.

View our latest analysis for DyDo Group Holdings

DyDo Group Holdings Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The most recent annual payment of ¥30.00 is about the same as the annual payment 10 years ago. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.

DyDo Group Holdings May Find It Hard To Grow The Dividend

Investors could be attracted to the stock based on the quality of its payment history. Unfortunately things aren't as good as they seem. However, DyDo Group Holdings' EPS was effectively flat over the past five years, which could stop the company from paying more every year.

DyDo Group Holdings' Dividend Doesn't Look Sustainable

Overall, it's not great to see that the dividend has been cut, but this might be explained by the payments being a bit high previously. The payout levels might be a bit high for our liking, but we can't deny that until now, the payments have been pretty consistent. We would probably look elsewhere for an income investment.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Are management backing themselves to deliver performance? Check their shareholdings in DyDo Group Holdings in our latest insider ownership analysis. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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