JINS HOLDINGS (TSE:3046) Is Due To Pay A Dividend Of ¥44.00

JINS HOLDINGS Inc. (TSE:3046) will pay a dividend of ¥44.00 on the 1st of December. Despite this raise, the dividend yield of 1.1% is only a modest boost to shareholder returns.

Our free stock report includes 1 warning sign investors should be aware of before investing in JINS HOLDINGS. Read for free now.

JINS HOLDINGS' Future Dividend Projections Appear Well Covered By Earnings

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Before making this announcement, JINS HOLDINGS was easily earning enough to cover the dividend. 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 9.6%. If the dividend continues on this path, the payout ratio could be 32% by next year, which we think can be pretty sustainable going forward.

See our latest analysis for JINS HOLDINGS

Dividend Volatility

Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2015, the dividend has gone from ¥16.00 total annually to ¥94.00. This implies that the company grew its distributions at a yearly rate of about 19% over that duration. Dividends have grown rapidly over this time, but with cuts in the past we are not certain that this stock will be a reliable source of income in the future.

We Could See JINS HOLDINGS' Dividend Growing

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. We are encouraged to see that JINS HOLDINGS has grown earnings per share at 9.5% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for JINS HOLDINGS' prospects of growing its dividend payments in the future.

JINS HOLDINGS Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that JINS HOLDINGS is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for JINS HOLDINGS that investors should take into consideration. Is JINS HOLDINGS 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.