HYUGA PRIMARY CARELtd's (TSE:7133) Dividend Will Be ¥20.00

HYUGA PRIMARY CARE Co.,Ltd.'s (TSE:7133) investors are due to receive a payment of ¥20.00 per share on 29th of June. The dividend yield is 1.6% based on this payment, which is a little bit low compared to the other companies in the industry.

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HYUGA PRIMARY CARELtd's Payment Could Potentially Have Solid Earnings Coverage

If it is predictable over a long period, even low dividend yields can be attractive. Before making this announcement, HYUGA PRIMARY CARELtd 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 9.2% over the next 12 months. If the dividend continues on this path, the payout ratio could be 19% by next year, which we think can be pretty sustainable going forward.

View our latest analysis for HYUGA PRIMARY CARELtd

HYUGA PRIMARY CARELtd Doesn't Have A Long Payment History

The company hasn't been paying a dividend for very long at all, so we can't really make a judgement on how stable the dividend has been. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself.

The Dividend Has Growth Potential

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. HYUGA PRIMARY CARELtd has seen EPS rising for the last five years, at 9.2% per annum. HYUGA PRIMARY CARELtd definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like HYUGA PRIMARY CARELtd's Dividend

Overall, we like to see the dividend staying consistent, and we think HYUGA PRIMARY CARELtd might even raise payments in the future. 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.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Taking the debate a bit further, we've identified 3 warning signs for HYUGA PRIMARY CARELtd that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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