Nojima (TSE:7419) Has Announced A Dividend Of ¥23.00

Nojima Corporation (TSE:7419) will pay a dividend of ¥23.00 on the 8th of December. This makes the dividend yield about the same as the industry average at 1.2%.

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Nojima's Future Dividend Projections Appear Well Covered By Earnings

Unless the payments are sustainable, the dividend yield doesn't mean too much. However, Nojima's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

If the trend of the last few years continues, EPS will grow by 17.2% over the next 12 months. If the dividend continues on this path, the payout ratio could be 12% by next year, which we think can be pretty sustainable going forward.

View our latest analysis for Nojima

Nojima Has A Solid Track Record

The company has an extended history of paying stable dividends. The annual payment during the last 10 years was ¥6.00 in 2015, and the most recent fiscal year payment was ¥46.00. This means that it has been growing its distributions at 23% 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.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Nojima has grown earnings per share at 17% 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 Nojima'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. For instance, we've picked out 1 warning sign for Nojima that investors should take into consideration. Is Nojima not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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