Kyodo Public Relations (TSE:2436) Is Paying Out A Larger Dividend Than Last Year

Kyodo Public Relations Co., Ltd. (TSE:2436) will increase its dividend from last year's comparable payment on the 30th of March to ¥14.00. Even though the dividend went up, the yield is still quite low at only 1.5%.

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Kyodo Public Relations' Projected Earnings Seem Likely To Cover Future Distributions

Even a low dividend yield can be attractive if it is sustained for years on end. Before making this announcement, Kyodo Public Relations was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share could rise by 79.8% over the next year if the trend from the last few years continues. If the dividend continues on this path, the payout ratio could be 12% by next year, which we think can be pretty sustainable going forward.

See our latest analysis for Kyodo Public Relations

Kyodo Public Relations Is Still Building Its Track Record

Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. The dividend has gone from an annual total of ¥0.833 in 2017 to the most recent total annual payment of ¥14.00. This means that it has been growing its distributions at 42% per annum over that time. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.

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. Kyodo Public Relations has seen EPS rising for the last five years, at 80% per annum. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future.

Kyodo Public Relations Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Kyodo Public Relations is a strong income stock thanks to its track record and growing earnings. 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.

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. For instance, we've picked out 1 warning sign for Kyodo Public Relations that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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