FTGroup (TSE:2763) Will Pay A Dividend Of ¥35.00

The board of FTGroup Co., Ltd. (TSE:2763) has announced that it will pay a dividend of ¥35.00 per share on the 23rd of June. Based on this payment, the dividend yield on the company's stock will be 4.5%, which is an attractive boost to shareholder returns.

View our latest analysis for FTGroup

FTGroup's Projected Earnings Seem Likely To Cover Future Distributions

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Before making this announcement, FTGroup was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.

Over the next year, EPS could expand by 12.5% if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could be 25% by next year, which is in a pretty sustainable range.

FTGroup Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2015, the annual payment back then was ¥13.33, compared to the most recent full-year payment of ¥55.00. This implies that the company grew its distributions at a yearly rate of about 15% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. FTGroup has seen EPS rising for the last five years, at 13% per annum. FTGroup definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

FTGroup Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think FTGroup might even raise payments in the future. 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. All in all, this checks a lot of the boxes we look for when choosing an income stock.

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. Are management backing themselves to deliver performance? Check their shareholdings in FTGroup in our latest insider ownership analysis. Is FTGroup not quite the opportunity you were looking for? Why not check out 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.