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Shikoku Electric Power Company (TSE:9507) Has Announced A Dividend Of ¥25.00

Simply Wall St · 2d ago

The board of Shikoku Electric Power Company, Incorporated (TSE:9507) has announced that it will pay a dividend of ¥25.00 per share on the 29th of June. This makes the dividend yield 3.4%, which is above the industry average.

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Shikoku Electric Power Company'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. Before making this announcement, Shikoku Electric Power Company was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.

Over the next year, EPS is forecast to fall by 14.4%. If the dividend continues along the path it has been on recently, we estimate the payout ratio could be 16%, which is comfortable for the company to continue in the future.

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TSE:9507 Historic Dividend December 14th 2025

Check out our latest analysis for Shikoku Electric Power Company

Dividend Volatility

The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of ¥20.00 in 2015 to the most recent total annual payment of ¥50.00. This means that it has been growing its distributions at 9.6% per annum over that time. It's good to see the dividend growing at a decent rate, but the dividend has been cut at least once in the past. Shikoku Electric Power Company might have put its house in order since then, but we remain cautious.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. It's encouraging to see that Shikoku Electric Power Company has been growing its earnings per share at 64% a year over the past five years. 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.

We Really Like Shikoku Electric Power Company's Dividend

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The earnings easily cover the company's distributions, and the company is generating plenty of cash. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. All of these factors considered, we think this has solid potential as a dividend 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. Just as an example, we've come across 3 warning signs for Shikoku Electric Power Company you should be aware of, and 2 of them are a bit concerning. Is Shikoku Electric Power Company not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.