Nippon Television Holdings' (TSE:9404) Dividend Will Be ¥10.00

Nippon Television Holdings, Inc. (TSE:9404) has announced that it will pay a dividend of ¥10.00 per share on the 2nd of December. The dividend yield is 1.2% based on this payment, which is a little bit low compared to the other companies in the industry.

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Nippon Television Holdings' Payment Could Potentially Have Solid Earnings Coverage

While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. However, prior to this announcement, Nippon Television Holdings' dividend was comfortably covered by both cash flow and earnings. As a result, a large proportion of what it earned was being reinvested back into the business.

The next year is set to see EPS grow by 5.3%. Assuming the dividend continues along recent trends, we think the payout ratio could be 21% by next year, which is in a pretty sustainable range.

Check out our latest analysis for Nippon Television Holdings

Nippon Television Holdings Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2015, the annual payment back then was ¥30.00, compared to the most recent full-year payment of ¥40.00. This works out to be a compound annual growth rate (CAGR) of approximately 2.9% a year over that time. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.

We Could See Nippon Television Holdings' Dividend Growing

The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that Nippon Television Holdings has been growing its earnings per share at 9.0% a year over the past five years. Nippon Television Holdings definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Nippon Television Holdings Looks Like A Great Dividend Stock

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. 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.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Earnings growth generally bodes well for the future value of company dividend payments. See if the 6 Nippon Television Holdings analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Nippon Television Holdings not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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