WEBULL

Soliton Systems K.K. (TSE:3040) Passed Our Checks, And It's About To Pay A JP¥28.00 Dividend

Simply Wall St · 1d ago

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Soliton Systems K.K. (TSE:3040) is about to go ex-dividend in just 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 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 Soliton Systems K.K's shares on or after the 29th of December will not receive the dividend, which will be paid on the 30th of March.

The company's next dividend payment will be JP¥28.00 per share, and in the last 12 months, the company paid a total of JP¥52.00 per share. Looking at the last 12 months of distributions, Soliton Systems K.K has a trailing yield of approximately 2.5% on its current stock price of JP¥2065.00. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether Soliton Systems K.K can afford its dividend, and if the dividend could grow.

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.

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. That's why it's good to see Soliton Systems K.K paying out a modest 50% of its earnings. A useful secondary check can be to evaluate whether Soliton Systems K.K generated enough free cash flow to afford its dividend. Luckily it paid out just 21% of its free cash flow last year.

It's positive to see that Soliton Systems K.K's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

Check out our latest analysis for Soliton Systems K.K

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

historic-dividend
TSE:3040 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. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see Soliton Systems K.K's earnings have been skyrocketing, up 30% per annum for the past five years. Earnings per share have been growing very quickly, and the company is paying out a relatively low percentage of its profit and cash flow. This is a very favourable combination that can often lead to the dividend multiplying over the long term, if earnings grow and the company pays out a higher percentage of its earnings.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Soliton Systems K.K has delivered an average of 21% per year annual increase in its dividend, based on the past 10 years of dividend payments. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.

To Sum It Up

Should investors buy Soliton Systems K.K for the upcoming dividend? Soliton Systems K.K has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. There's a lot to like about Soliton Systems K.K, and we would prioritise taking a closer look at it.

On that note, you'll want to research what risks Soliton Systems K.K is facing. Case in point: We've spotted 1 warning sign for Soliton Systems K.K you should be aware of.

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.