Toyo Suisan Kaisha (TSE:2875) Has Announced A Dividend Of ¥80.00

The board of Toyo Suisan Kaisha, Ltd. (TSE:2875) has announced that it will pay a dividend on the 5th of December, with investors receiving ¥80.00 per share. This means the dividend yield will be fairly typical at 1.9%.

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Toyo Suisan Kaisha's Future Dividend Projections Appear Well Covered By Earnings

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. However, Toyo Suisan Kaisha's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

Looking forward, earnings per share is forecast to rise by 5.8% over the next year. If the dividend continues on this path, the payout ratio could be 35% by next year, which we think can be pretty sustainable going forward.

Check out our latest analysis for Toyo Suisan Kaisha

Toyo Suisan Kaisha Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was ¥50.00 in 2015, and the most recent fiscal year payment was ¥200.00. This works out to be a compound annual growth rate (CAGR) of approximately 15% a year over that time. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Toyo Suisan Kaisha has grown earnings per share at 18% per year over the past five years. Toyo Suisan Kaisha definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Toyo Suisan Kaisha Looks Like A Great Dividend Stock

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 9 Toyo Suisan Kaisha analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Toyo Suisan Kaisha not quite the opportunity you were looking for? Why not check out 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.