Fukui Computer HoldingsInc's (TSE:9790) Shareholders Will Receive A Bigger Dividend Than Last Year

Fukui Computer Holdings,Inc. (TSE:9790) has announced that it will be increasing its dividend from last year's comparable payment on the 23rd of June to ¥73.00. This will take the dividend yield to an attractive 2.4%, providing a nice boost to shareholder returns.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Fukui Computer HoldingsInc's Projected Earnings Seem Likely To Cover Future Distributions

If the payments aren't sustainable, a high yield for a few years won't matter that much. However, Fukui Computer HoldingsInc's earnings easily 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 9.9%. Assuming the dividend continues along recent trends, we think the payout ratio could be 41% by next year, which is in a pretty sustainable range.

Check out our latest analysis for Fukui Computer HoldingsInc

Fukui Computer HoldingsInc 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. Since 2015, the dividend has gone from ¥15.00 total annually to ¥73.00. This means that it has been growing its distributions at 17% per annum over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

Fukui Computer HoldingsInc Could Grow Its Dividend

Investors could be attracted to the stock based on the quality of its payment history. Fukui Computer HoldingsInc has seen EPS rising for the last five years, at 5.1% per annum. 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, a dividend increase is always good, and we think that Fukui Computer HoldingsInc is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. 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. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Fukui Computer HoldingsInc stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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

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.