Nomura Research Institute (TSE:4307) Has Announced A Dividend Of ¥29.00

Nomura Research Institute, Ltd. (TSE:4307) has announced that it will pay a dividend of ¥29.00 per share on the 2nd of December. The payment will take the dividend yield to 1.2%, which is in line with the average for the industry.

View our latest analysis for Nomura Research Institute

Nomura Research Institute's Earnings Easily Cover The Distributions

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. Before making this announcement, Nomura Research Institute was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.

The next year is set to see EPS grow by 8.7%. If the dividend continues on this path, the payout ratio could be 40% by next year, which we think can be pretty sustainable going forward.

Nomura Research Institute 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 ¥14.33 in 2014 to the most recent total annual payment of ¥58.00. This implies that the company grew its distributions at a yearly rate of about 15% 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.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. Nomura Research Institute has impressed us by growing EPS at 14% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

We Really Like Nomura Research Institute's Dividend

Overall, a dividend increase is always good, and we think that Nomura Research Institute 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 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. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Earnings growth generally bodes well for the future value of company dividend payments. See if the 13 Nomura Research Institute analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Nomura Research Institute not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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