Nippon Television Holdings (TSE:9404) Is Paying Out A Dividend Of ¥10.00

Nippon Television Holdings, Inc.'s (TSE:9404) investors are due to receive a payment of ¥10.00 per share on 2nd of December. This means the annual payment will be 1.7% of the current stock price, which is lower than the industry average.

View our latest analysis for Nippon Television Holdings

Nippon Television Holdings' Earnings Easily Cover The Distributions

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. However, Nippon Television Holdings' earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.

Over the next year, EPS is forecast to expand by 5.8%. Assuming the dividend continues along recent trends, we think the payout ratio could be 26% by next year, which is in a pretty sustainable range.

Nippon Television Holdings Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The dividend has gone from an annual total of ¥29.00 in 2014 to the most recent total annual payment of ¥40.00. This means that it has been growing its distributions at 3.3% per annum over that time. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.

Dividend Growth May Be Hard To Achieve

The company's investors will be pleased to have been receiving dividend income for some time. However, Nippon Television Holdings' EPS was effectively flat over the past five years, which could stop the company from paying more every year. If Nippon Television Holdings is struggling to find viable investments, it always has the option to increase its payout ratio to pay more to shareholders.

We Really Like Nippon Television Holdings' Dividend

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. 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.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 6 analysts we track are forecasting for Nippon Television Holdings for free with public analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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