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ZERO's (TSE:9028) Dividend Will Be ¥56.00

Simply Wall St · 2d ago

ZERO Co., Ltd.'s (TSE:9028) investors are due to receive a payment of ¥56.00 per share on 16th of March. This makes the dividend yield 3.6%, which is above the industry average.

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ZERO's Future Dividend Projections Appear Well Covered By Earnings

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, ZERO's earnings easily 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 expand by 6.6%. If the dividend continues along recent trends, we estimate the payout ratio will be 38%, which is in the range that makes us comfortable with the sustainability of the dividend.

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TSE:9028 Historic Dividend December 25th 2025

Check out our latest analysis for ZERO

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 ¥23.00 in 2015 to the most recent total annual payment of ¥140.30. This implies that the company grew its distributions at a yearly rate of about 20% over that duration. 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

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. It's encouraging to see that ZERO has been growing its earnings per share at 21% a year over the past five years. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend.

We Really Like ZERO's Dividend

Overall, a dividend increase is always good, and we think that ZERO is a strong income stock thanks to its track record and growing earnings. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for ZERO that investors should take into consideration. Is ZERO not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.