Stock Analysis

WILLs' (TSE:4482) Shareholders Will Receive A Bigger Dividend Than Last Year

TSE:4482
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WILLs Inc. (TSE:4482) has announced that it will be increasing its dividend from last year's comparable payment on the 17th of September to ¥6.50. This takes the dividend yield to 1.9%, which shareholders will be pleased with.

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WILLs' Projected Earnings Seem Likely To Cover Future Distributions

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, prior to this announcement, WILLs' dividend was comfortably covered by both cash flow and earnings. 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 16.1% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio will be 46%, which is in the range that makes us comfortable with the sustainability of the dividend.

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TSE:4482 Historic Dividend June 24th 2025

Check out our latest analysis for WILLs

WILLs Is Still Building Its Track Record

The dividend hasn't seen any major cuts in the past, but the company has only been paying a dividend for 4 years, which isn't that long in the grand scheme of things. The annual payment during the last 4 years was ¥2.50 in 2021, and the most recent fiscal year payment was ¥13.00. This implies that the company grew its distributions at a yearly rate of about 51% over that duration. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. WILLs has impressed us by growing EPS at 16% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for WILLs' prospects of growing its dividend payments in the future.

WILLs Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that WILLs 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. All of these factors considered, we think this has solid potential as a dividend stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. Taking the debate a bit further, we've identified 1 warning sign for WILLs that investors need to be conscious of moving forward. Is WILLs not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

Valuation is complex, but we're here to simplify it.

Discover if WILLs might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.