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

OLBA HEALTHCARE HOLDINGS, Inc. (TSE:2689) will pay a dividend of ¥70.00 on the 30th of September. The dividend yield will be 3.3% based on this payment which is still above the industry average.

See our latest analysis for OLBA HEALTHCARE HOLDINGS

OLBA HEALTHCARE HOLDINGS' Payment Has Solid Earnings Coverage

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Before making this announcement, OLBA HEALTHCARE HOLDINGS was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

If the trend of the last few years continues, EPS will grow by 15.9% over the next 12 months. If the dividend continues on this path, the payout ratio could be 26% by next year, which we think can be pretty sustainable going forward.

OLBA HEALTHCARE HOLDINGS Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2014, the dividend has gone from ¥20.00 total annually to ¥70.00. This works out to be a compound annual growth rate (CAGR) of approximately 13% a year over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. OLBA HEALTHCARE HOLDINGS has impressed us by growing EPS at 16% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for OLBA HEALTHCARE HOLDINGS' prospects of growing its dividend payments in the future.

OLBA HEALTHCARE HOLDINGS Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think OLBA HEALTHCARE HOLDINGS might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for OLBA HEALTHCARE HOLDINGS that you should be aware of before investing. 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.