Dai-ichi Life Holdings (TSE:8750) Has Affirmed Its Dividend Of ¥86.00

Dai-ichi Life Holdings, Inc. (TSE:8750) has announced that it will pay a dividend of ¥86.00 per share on the 27th of June. This payment means the dividend yield will be 2.4%, which is below the average for the industry.

View our latest analysis for Dai-ichi Life Holdings

Dai-ichi Life Holdings' Dividend Is Well Covered By Earnings

If it is predictable over a long period, even low dividend yields can be attractive. However, Dai-ichi Life Holdings' earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 25.1%. If the dividend continues on this path, the payout ratio could be 28% by next year, which we think can be pretty sustainable going forward.

Dai-ichi Life Holdings Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2014, the dividend has gone from ¥20.00 total annually to ¥86.00. This implies that the company grew its distributions at a yearly rate of about 16% over that duration. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

The Dividend's Growth Prospects Are Limited

Investors could be attracted to the stock based on the quality of its payment history. Dai-ichi Life Holdings hasn't seen much change in its earnings per share over the last five years. While EPS growth is quite low, Dai-ichi Life Holdings has the option to increase the payout ratio to return more cash to shareholders.

We Really Like Dai-ichi Life Holdings' Dividend

Overall, we like to see the dividend staying consistent, and we think Dai-ichi Life 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. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 1 warning sign for Dai-ichi Life Holdings that you should be aware of before investing. Is Dai-ichi Life Holdings 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.