Logizard Co.,Ltd. (TSE:4391) Passed Our Checks, And It's About To Pay A JP¥15.00 Dividend

Readers hoping to buy Logizard Co.,Ltd. (TSE:4391) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Accordingly, LogizardLtd investors that purchase the stock on or after the 27th of June will not receive the dividend, which will be paid on the 30th of September.

The company's next dividend payment will be JP¥15.00 per share, on the back of last year when the company paid a total of JP¥9.00 to shareholders. Last year's total dividend payments show that LogizardLtd has a trailing yield of 1.1% on the current share price of JP¥1410.00. If you buy this business for its dividend, you should have an idea of whether LogizardLtd's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

See our latest analysis for LogizardLtd

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. LogizardLtd paid out just 20% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.

Click here to see how much of its profit LogizardLtd paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. For that reason, it's encouraging to see LogizardLtd's earnings over the past year have risen 29%. While we'd be remiss not to point out that a year is a very short time in dividend investing, it's an encouraging sign so far.

We do note though, one year is too short a time to be drawing strong conclusions about a company's future growth prospects.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. LogizardLtd has delivered 29% dividend growth per year on average over the past two years. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

The Bottom Line

Is LogizardLtd worth buying for its dividend? LogizardLtd has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. It's a promising combination that should mark this company worthy of closer attention.

While it's tempting to invest in LogizardLtd for the dividends alone, you should always be mindful of the risks involved. For example, LogizardLtd has 2 warning signs (and 1 which can't be ignored) we think you should know about.

If you're in the market for strong dividend payers, we recommend checking 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com