Shin-Etsu PolymerLtd (TSE:7970) Has Announced A Dividend Of ¥30.00

Shin-Etsu Polymer Co.,Ltd. (TSE:7970) has announced that it will pay a dividend of ¥30.00 per share on the 25th of June. This will take the dividend yield to an attractive 3.1%, providing a nice boost to shareholder returns.

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Shin-Etsu PolymerLtd's Projected Earnings Seem Likely To Cover Future Distributions

A big dividend yield for a few years doesn't mean much if it can't be sustained. The last dividend was quite easily covered by Shin-Etsu PolymerLtd's earnings. This means that a large portion of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 9.0%. Assuming the dividend continues along recent trends, we think the payout ratio could be 51% by next year, which is in a pretty sustainable range.

See our latest analysis for Shin-Etsu PolymerLtd

Shin-Etsu PolymerLtd Has A Solid Track Record

The company has an extended history of paying stable dividends. The annual payment during the last 10 years was ¥9.00 in 2015, and the most recent fiscal year payment was ¥60.00. This means that it has been growing its distributions at 21% per annum 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 who have held shares in the company for the past few years will be happy with the dividend income they have received. Shin-Etsu PolymerLtd has seen EPS rising for the last five years, at 14% per annum. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.

We Really Like Shin-Etsu PolymerLtd's Dividend

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. 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. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Shin-Etsu PolymerLtd stock. Is Shin-Etsu PolymerLtd not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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