Aoyama Zaisan Networks CompanyLimited (TSE:8929) Is Due To Pay A Dividend Of ¥20.00

Aoyama Zaisan Networks Company,Limited (TSE:8929) has announced that it will pay a dividend of ¥20.00 per share on the 26th of August. This makes the dividend yield about the same as the industry average at 2.7%.

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Aoyama Zaisan Networks CompanyLimited's Payment Could Potentially Have Solid Earnings Coverage

We aren't too impressed by dividend yields unless they can be sustained over time. The last dividend was quite easily covered by Aoyama Zaisan Networks CompanyLimited's earnings. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth.

The next year is set to see EPS grow by 13.2%. If the dividend continues along recent trends, we estimate the payout ratio will be 49%, which is in the range that makes us comfortable with the sustainability of the dividend.

View our latest analysis for Aoyama Zaisan Networks CompanyLimited

Aoyama Zaisan Networks CompanyLimited Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2015, the dividend has gone from ¥5.00 total annually to ¥51.00. This implies that the company grew its distributions at a yearly rate of about 26% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

We Could See Aoyama Zaisan Networks CompanyLimited's Dividend Growing

Investors could be attracted to the stock based on the quality of its payment history. Aoyama Zaisan Networks CompanyLimited has seen EPS rising for the last five years, at 7.7% per annum. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.

We Really Like Aoyama Zaisan Networks CompanyLimited's Dividend

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. 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.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Now, if you want to look closer, it would be worth checking out our free research on Aoyama Zaisan Networks CompanyLimited management tenure, salary, and performance. Is Aoyama Zaisan Networks CompanyLimited not quite the opportunity you were looking for? Why not check out 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.