Stock Analysis

Kyowa Kirin (TSE:4151) Is Due To Pay A Dividend Of ¥29.00

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The board of Kyowa Kirin Co., Ltd. (TSE:4151) has announced that it will pay a dividend on the 2nd of September, with investors receiving ¥29.00 per share. The payment will take the dividend yield to 2.2%, which is in line with the average for the industry.

See our latest analysis for Kyowa Kirin

Kyowa Kirin's Earnings Easily Cover The Distributions

Solid dividend yields are great, but they only really help us if the payment is sustainable. However, Kyowa Kirin's 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 2.6%. If the dividend continues on this path, the payout ratio could be 40% by next year, which we think can be pretty sustainable going forward.

TSE:4151 Historic Dividend April 25th 2024

Kyowa Kirin Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2014, the annual payment back then was ¥25.00, compared to the most recent full-year payment of ¥58.00. This means that it has been growing its distributions at 8.8% per annum over that time. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.

Kyowa Kirin Could Grow Its Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Kyowa Kirin has impressed us by growing EPS at 8.8% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Kyowa Kirin's prospects of growing its dividend payments in the future.

We Really Like Kyowa Kirin's Dividend

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. 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 in all, this checks a lot of the boxes we look for when choosing an income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for Kyowa Kirin that you should be aware of before investing. 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

About TSE:4151

Kyowa Kirin

Engages in the research, development, manufacturing, marketing, and import/export of pharmaceuticals for oncology, nephrology, central nervous system, and immunology therapeutic areas in Japan, the United States, rest of the Americas, Europe, Asia, and internationally.

Flawless balance sheet with solid track record and pays a dividend.