San ju San Financial GroupInc (TSE:7322) Is Due To Pay A Dividend Of ¥64.00

San ju San Financial Group,Inc. (TSE:7322) will pay a dividend of ¥64.00 on the 23rd of June. Based on this payment, the dividend yield for the company will be 3.1%, which is fairly typical for the industry.

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San ju San Financial GroupInc's Payment Expected To Have Solid Earnings Coverage

We aren't too impressed by dividend yields unless they can be sustained over time.

San ju San Financial GroupInc has a good history of paying out dividends, with its current track record at 7 years. Taking data from its last earnings report, calculating for the company's payout ratio of 35%shows that San ju San Financial GroupInc would be able to pay its last dividend without pressure on the balance sheet.

Over the next year, EPS could expand by 25.2% if recent trends continue. If the dividend continues along recent trends, we estimate the future payout ratio will be 30%, which is in the range that makes us comfortable with the sustainability of the dividend.

See our latest analysis for San ju San Financial GroupInc

San ju San Financial GroupInc Is Still Building Its Track Record

Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. The dividend has gone from an annual total of ¥72.00 in 2018 to the most recent total annual payment of ¥128.00. This means that it has been growing its distributions at 8.6% per annum over that time. The dividend has been growing as a reasonable rate, which we like. However, investors will probably want to see a longer track record before they consider San ju San Financial GroupInc to be a consistent dividend paying stock.

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. San ju San Financial GroupInc has seen EPS rising for the last five years, at 25% per annum. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.

San ju San Financial GroupInc Looks Like A Great Dividend Stock

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. 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. Now, if you want to look closer, it would be worth checking out our free research on San ju San Financial GroupInc management tenure, salary, and performance. If you are a dividend investor, you might also want to look at our curated list of high yield 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.