Aoyama Zaisan Networks CompanyLimited's (TSE:8929) Dividend Will Be Increased To ¥31.00

Aoyama Zaisan Networks Company,Limited (TSE:8929) will increase its dividend from last year's comparable payment on the 30th of March to ¥31.00. Based on this payment, the dividend yield for the company will be 2.4%, which is fairly typical for the industry.

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Aoyama Zaisan Networks CompanyLimited's Future Dividend Projections Appear Well Covered By Earnings

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. However, prior to this announcement, Aoyama Zaisan Networks CompanyLimited's 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 7.4%. If the dividend continues along recent trends, we estimate the payout ratio will be 53%, 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 been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The dividend has gone from an annual total of ¥5.00 in 2015 to the most recent total annual payment of ¥51.00. This means that it has been growing its distributions at 26% per annum over that time. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable.

Aoyama Zaisan Networks CompanyLimited Could Grow Its Dividend

The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Aoyama Zaisan Networks CompanyLimited has grown earnings per share at 9.9% per year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.

We Really Like Aoyama Zaisan Networks CompanyLimited's Dividend

Overall, a dividend increase is always good, and we think that Aoyama Zaisan Networks CompanyLimited is a strong income stock thanks to its track record and growing earnings. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. 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. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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