OLBA HEALTHCARE HOLDINGS (TSE:2689) Is Due To Pay A Dividend Of ¥70.00

The board of OLBA HEALTHCARE HOLDINGS, Inc. (TSE:2689) has announced that it will pay a dividend of ¥70.00 per share on the 30th of September. This makes the dividend yield 3.5%, which will augment investor returns quite nicely.

View our latest analysis for OLBA HEALTHCARE HOLDINGS

OLBA HEALTHCARE HOLDINGS' Payment Has Solid Earnings Coverage

If the payments aren't sustainable, a high yield for a few years won't matter that much. However, prior to this announcement, OLBA HEALTHCARE HOLDINGS' dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share could rise by 9.1% over the next year if the trend from the last few years continues. If the dividend continues along recent trends, we estimate the payout ratio will be 31%, which is in the range that makes us comfortable with the sustainability of the dividend.

OLBA HEALTHCARE HOLDINGS Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The dividend has gone from an annual total of ¥20.00 in 2014 to the most recent total annual payment of ¥70.00. This implies that the company grew its distributions at a yearly rate of about 13% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

OLBA HEALTHCARE HOLDINGS Could Grow Its Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. We are encouraged to see that OLBA HEALTHCARE HOLDINGS has grown earnings per share at 9.1% per year over the past five years. OLBA HEALTHCARE HOLDINGS definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like OLBA HEALTHCARE HOLDINGS' 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. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for OLBA HEALTHCARE HOLDINGS that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated 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.