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Why You Might Be Interested In KeyHolder, Inc. (TSE:4712) For Its Upcoming Dividend

Simply Wall St · 1d ago

It looks like KeyHolder, Inc. (TSE:4712) is about to go ex-dividend in the next four days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. This means that investors who purchase KeyHolder's shares on or after the 29th of December will not receive the dividend, which will be paid on the 26th of March.

The company's next dividend payment will be JP¥10.00 per share. Last year, in total, the company distributed JP¥10.00 to shareholders. Looking at the last 12 months of distributions, KeyHolder has a trailing yield of approximately 1.4% on its current stock price of JP¥711.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. 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 usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. KeyHolder has a low and conservative payout ratio of just 8.6% of its income after tax.

See our latest analysis for KeyHolder

Click here to see how much of its profit KeyHolder paid out over the last 12 months.

historic-dividend
TSE:4712 Historic Dividend December 24th 2025

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're encouraged by the steady growth at KeyHolder, with earnings per share up 8.8% on average over the last five years. Earnings per share have been increasing steadily and management is reinvesting almost all of the profits back into the business. If profits are reinvested effectively, this could be a bullish combination for future earnings and dividends.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. KeyHolder's dividend payments per share have declined at 6.7% per year on average over the past 10 years, which is uninspiring. KeyHolder is a rare case where dividends have been decreasing at the same time as earnings per share have been improving. It's unusual to see, and could point to unstable conditions in the core business, or more rarely an intensified focus on reinvesting profits.

Final Takeaway

Should investors buy KeyHolder for the upcoming dividend? KeyHolder has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. In summary, KeyHolder appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

On that note, you'll want to research what risks KeyHolder is facing. Every company has risks, and we've spotted 2 warning signs for KeyHolder you should know about.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.