Saibu Gas HoldingsLtd's (TSE:9536) Dividend Will Be ¥35.00

Saibu Gas Holdings Co.,Ltd. (TSE:9536) will pay a dividend of ¥35.00 on the 2nd of December. The dividend yield will be 3.9% based on this payment which is still above the industry average.

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Saibu Gas HoldingsLtd'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, Saibu Gas HoldingsLtd 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 6.5% if recent trends continue. If the dividend continues on this path, the payout ratio could be 38% by next year, which we think can be pretty sustainable going forward.

See our latest analysis for Saibu Gas HoldingsLtd

Saibu Gas HoldingsLtd Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was ¥60.00 in 2015, and the most recent fiscal year payment was ¥70.00. This works out to be a compound annual growth rate (CAGR) of approximately 1.6% a year over that time. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.

Saibu Gas HoldingsLtd Could Grow Its Dividend

The company's investors will be pleased to have been receiving dividend income for some time. Saibu Gas HoldingsLtd has impressed us by growing EPS at 6.5% per year over the past five years. Saibu Gas HoldingsLtd definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Saibu Gas HoldingsLtd Looks Like A Great Dividend Stock

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. 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.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. As an example, we've identified 1 warning sign for Saibu Gas HoldingsLtd that you should be aware of before investing. Is Saibu Gas HoldingsLtd not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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