Fukui Computer HoldingsInc's (TSE:9790) Dividend Will Be Increased To ¥65.00

The board of Fukui Computer Holdings,Inc. (TSE:9790) has announced that it will be paying its dividend of ¥65.00 on the 26th of June, an increased payment from last year's comparable dividend. This makes the dividend yield 2.5%, which is above the industry average.

View our latest analysis for Fukui Computer HoldingsInc

Fukui Computer HoldingsInc's Payment Has Solid Earnings Coverage

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, Fukui Computer HoldingsInc's earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.

The next year is set to see EPS grow by 5.1%. If the dividend continues along recent trends, we estimate the payout ratio will be 40%, which is in the range that makes us comfortable with the sustainability of the dividend.

Fukui Computer HoldingsInc 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 ¥10.00, compared to the most recent full-year payment of ¥65.00. This means that it has been growing its distributions at 21% 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.

Fukui Computer HoldingsInc Could Grow Its Dividend

Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Fukui Computer HoldingsInc has been growing its earnings per share at 6.6% a year over the past five years. Fukui Computer HoldingsInc definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like Fukui Computer HoldingsInc's Dividend

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

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. Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 Fukui Computer HoldingsInc analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.