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Is It Smart To Buy artience Co., Ltd. (TSE:4634) Before It Goes Ex-Dividend?

Simply Wall St · 1d ago

artience Co., Ltd. (TSE:4634) stock is about to trade ex-dividend in 4 days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. In other words, investors can purchase artience's shares before the 29th of December in order to be eligible for the dividend, which will be paid on the 27th of March.

The company's upcoming dividend is JP¥50.00 a share, following on from the last 12 months, when the company distributed a total of JP¥100.00 per share to shareholders. Based on the last year's worth of payments, artience stock has a trailing yield of around 2.8% on the current share price of JP¥3525.00. If you buy this business for its dividend, you should have an idea of whether artience's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

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Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. artience paid out a comfortable 32% of its profit last year. A useful secondary check can be to evaluate whether artience generated enough free cash flow to afford its dividend. Over the last year, it paid out more than three-quarters (85%) of its free cash flow generated, which is fairly high and may be starting to limit reinvestment in the business.

It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

See our latest analysis for artience

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

historic-dividend
TSE:4634 Historic Dividend December 24th 2025

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. For this reason, we're glad to see artience's earnings per share have risen 18% per annum over the last five years. The company paid out most of its earnings as dividends over the last year, even though business is booming and earnings per share are growing rapidly. Higher earnings generally bode well for growing dividends, although with seemingly strong growth prospects we'd wonder why management are not reinvesting more in the business.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. artience has delivered an average of 3.6% per year annual increase in its dividend, based on the past 10 years of dividend payments. Earnings per share have been growing much quicker than dividends, potentially because artience is keeping back more of its profits to grow the business.

To Sum It Up

Has artience got what it takes to maintain its dividend payments? Earnings per share have grown at a nice rate in recent times and over the last year, artience paid out less than half its earnings and a bit over half its free cash flow. Overall we think this is an attractive combination and worthy of further research.

Wondering what the future holds for artience? See what the three analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

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