Three Days Left To Buy Japan Property Management Center Co.,Ltd. (TSE:3276) Before The Ex-Dividend Date

Japan Property Management Center Co.,Ltd. (TSE:3276) is about to trade ex-dividend in the next three days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Accordingly, Japan Property Management CenterLtd investors that purchase the stock on or after the 27th of December will not receive the dividend, which will be paid on the 12th of March.

The company's next dividend payment will be JP¥27.50 per share. Last year, in total, the company distributed JP¥55.00 to shareholders. Looking at the last 12 months of distributions, Japan Property Management CenterLtd has a trailing yield of approximately 4.9% on its current stock price of JP¥1130.00. If you buy this business for its dividend, you should have an idea of whether Japan Property Management CenterLtd's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.

See our latest analysis for Japan Property Management CenterLtd

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Japan Property Management CenterLtd paid out 53% of its earnings to investors last year, a normal payout level for most businesses. A useful secondary check can be to evaluate whether Japan Property Management CenterLtd generated enough free cash flow to afford its dividend. Fortunately, it paid out only 49% of its free cash flow in the past year.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

Click here to see how much of its profit Japan Property Management CenterLtd paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's not encouraging to see that Japan Property Management CenterLtd's earnings are effectively flat over the past five years. We'd take that over an earnings decline any day, but in the long run, the best dividend stocks all grow their earnings per share.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Japan Property Management CenterLtd has delivered an average of 12% per year annual increase in its dividend, based on the past 10 years of dividend payments.

To Sum It Up

Is Japan Property Management CenterLtd an attractive dividend stock, or better left on the shelf? The payout ratios appear reasonably conservative, which implies the dividend may be somewhat sustainable. Still, with earnings basically flat, Japan Property Management CenterLtd doesn't stand out from a dividend perspective. While it does have some good things going for it, we're a bit ambivalent and it would take more to convince us of Japan Property Management CenterLtd's dividend merits.

If you're not too concerned about Japan Property Management CenterLtd's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. Every company has risks, and we've spotted 1 warning sign for Japan Property Management CenterLtd you should know about.

If you're in the market for strong dividend payers, we recommend checking our selection of top 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.