Takashimaya Company (TSE:8233) Has Announced A Dividend Of ¥20.00

The board of Takashimaya Company, Limited (TSE:8233) has announced that it will pay a dividend of ¥20.00 per share on the 22nd of November. This will take the annual payment to 1.5% of the stock price, which is above what most companies in the industry pay.

Check out our latest analysis for Takashimaya Company

Takashimaya Company's Payment Has Solid Earnings Coverage

If the payments aren't sustainable, a high yield for a few years won't matter that much. Before making this announcement, Takashimaya Company was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 6.8%. If the dividend continues along recent trends, we estimate the payout ratio will be 17%, which is in the range that makes us comfortable with the sustainability of the dividend.

Takashimaya Company Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2014, the annual payment back then was ¥20.00, compared to the most recent full-year payment of ¥40.00. This implies that the company grew its distributions at a yearly rate of about 7.2% over that duration. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Takashimaya Company has seen EPS rising for the last five years, at 13% per annum. Takashimaya Company definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Takashimaya Company Looks Like A Great Dividend Stock

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 4 analysts we track are forecasting for Takashimaya Company for free with public analyst estimates for the company. Is Takashimaya Company not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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