Natori (TSE:2922) Has Affirmed Its Dividend Of ¥12.00

The board of Natori Co., Ltd. (TSE:2922) has announced that it will pay a dividend of ¥12.00 per share on the 30th of June. This payment means the dividend yield will be 1.1%, which is below the average for the industry.

Check out our latest analysis for Natori

Natori's Projected Earnings Seem Likely To Cover Future Distributions

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Before making this announcement, Natori was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share is forecast to rise by 1.4% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 20%, which is in the range that makes us comfortable with the sustainability of the dividend.

Natori 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 dividend has gone from an annual total of ¥15.00 in 2014 to the most recent total annual payment of ¥24.00. This means that it has been growing its distributions at 4.8% per annum over that time. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.

We Could See Natori's Dividend Growing

The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Natori has grown earnings per share at 9.1% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Natori's prospects of growing its dividend payments in the future.

We Really Like Natori's Dividend

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. All of these factors considered, we think this has solid potential as a dividend stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. Now, if you want to look closer, it would be worth checking out our free research on Natori management tenure, salary, and performance. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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