Aica Kogyo Company's (TSE:4206) Dividend Will Be ¥66.00

The board of Aica Kogyo Company, Limited (TSE:4206) has announced that it will pay a dividend of ¥66.00 per share on the 3rd of December. This will take the dividend yield to an attractive 3.7%, providing a nice boost to shareholder returns.

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Aica Kogyo Company's Projected Earnings Seem Likely To Cover Future Distributions

If the payments aren't sustainable, a high yield for a few years won't matter that much. The last dividend was quite easily covered by Aica Kogyo Company's earnings. This means that a large portion of its earnings are being retained to grow the business.

The next year is set to see EPS grow by 7.5%. If the dividend continues along recent trends, we estimate the payout ratio will be 51%, which is in the range that makes us comfortable with the sustainability of the dividend.

Check out our latest analysis for Aica Kogyo Company

Aica Kogyo Company Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of ¥40.00 in 2015 to the most recent total annual payment of ¥136.00. This means that it has been growing its distributions at 13% per annum over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

We Could See Aica Kogyo Company's Dividend Growing

The company's investors will be pleased to have been receiving dividend income for some time. Aica Kogyo Company has impressed us by growing EPS at 6.7% per year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.

We Really Like Aica Kogyo Company's Dividend

Overall, a dividend increase is always good, and we think that Aica Kogyo Company is a strong income stock thanks to its track record and growing earnings. Distributions are quite easily covered by earnings, which are also being converted to cash flows. 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. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 4 Aica Kogyo Company analysts we track are forecasting continued growth with our free report on analyst estimates for the company. 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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