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Kyushu Electric Power Company's (TSE:9508) Dividend Will Be ¥25.00

Simply Wall St · 1d ago

The board of Kyushu Electric Power Company, Incorporated (TSE:9508) has announced that it will pay a dividend on the 29th of June, with investors receiving ¥25.00 per share. This means the dividend yield will be fairly typical at 3.0%.

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Kyushu Electric Power Company's Projected Earnings Seem Likely To Cover Future Distributions

While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. Before making this announcement, Kyushu 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.

EPS is set to fall by 6.5% over the next 12 months. Assuming the dividend continues along recent trends, we believe the payout ratio could be 17%, which we are pretty comfortable with and we think is feasible on an earnings basis.

historic-dividend
TSE:9508 Historic Dividend December 18th 2025

View our latest analysis for Kyushu Electric Power Company

Dividend Volatility

The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the dividend has gone from ¥5.00 total annually to ¥50.00. This means that it has been growing its distributions at 26% per annum over that time. It is great to see strong growth in the dividend payments, but cuts are concerning as it may indicate the payout policy is too ambitious.

The Dividend Looks Likely To Grow

Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. It's encouraging to see that Kyushu Electric Power Company has been growing its earnings per share at 26% a year over the past five years. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future.

We Really Like Kyushu Electric Power Company's Dividend

Overall, we like to see the dividend staying consistent, and we think Kyushu Electric Power Company might even raise payments in the future. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. We should point out that the earnings are expected to fall over the next 12 months, which won't be a problem if this doesn't become a trend, but could cause some turbulence in the next year. All of these factors considered, we think this has solid potential as a dividend stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For example, we've identified 3 warning signs for Kyushu Electric Power Company (2 are concerning!) that you should be aware of before investing. Is Kyushu Electric Power Company not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.