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Aichi Tokei Denki (TSE:7723) Will Pay A Dividend Of ¥45.00

Simply Wall St · 1d ago

Aichi Tokei Denki Co., Ltd. (TSE:7723) has announced that it will pay a dividend of ¥45.00 per share on the 26th of June. This will take the annual payment to 3.5% of the stock price, which is above what most companies in the industry pay.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Aichi Tokei Denki's Projected Earnings Seem Likely To Cover Future Distributions

A big dividend yield for a few years doesn't mean much if it can't be sustained. Prior to this announcement, Aichi Tokei Denki's earnings easily covered the dividend, but free cash flows were negative. In general, we consider cash flow to be more important than earnings, so we would be cautious about relying on the sustainability of this dividend.

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 34% by next year, which is in a pretty sustainable range.

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TSE:7723 Historic Dividend December 10th 2025

View our latest analysis for Aichi Tokei Denki

Dividend Volatility

Although the company has a long dividend history, it has been cut at least once in the last 10 years. The annual payment during the last 10 years was ¥33.33 in 2015, and the most recent fiscal year payment was ¥90.00. This works out to be a compound annual growth rate (CAGR) of approximately 10% a year over that time. Dividends have grown rapidly over this time, but with cuts in the past we are not certain that this stock will be a reliable source of income in the future.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. We are encouraged to see that Aichi Tokei Denki has grown earnings per share at 13% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Our Thoughts On Aichi Tokei Denki's Dividend

In summary, while it's always good to see the dividend being raised, we don't think Aichi Tokei Denki's payments are rock solid. With cash flows lacking, it is difficult to see how the company can sustain a dividend payment. This company is not in the top tier of income providing stocks.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for Aichi Tokei Denki that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.