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First Bank Of Toyama (TSE:7184) Is Due To Pay A Dividend Of ¥28.00

Simply Wall St · 1d ago

The board of The First Bank Of Toyama, Ltd. (TSE:7184) has announced that it will pay a dividend of ¥28.00 per share on the 25th of June. This makes the dividend yield about the same as the industry average at 3.1%.

While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that First Bank Of Toyama's stock price has increased by 33% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.

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First Bank Of Toyama's Payment Expected To Have Solid Earnings Coverage

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue.

First Bank Of Toyama has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but First Bank Of Toyama's payout ratio of 29% is a good sign as this means that earnings decently cover dividends.

If the trend of the last few years continues, EPS will grow by 48.5% over the next 12 months. If the dividend continues on this path, the future payout ratio could be 26% by next year, which we think can be pretty sustainable going forward.

historic-dividend
TSE:7184 Historic Dividend December 26th 2025

See our latest analysis for First Bank Of Toyama

Dividend Volatility

The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The dividend has gone from an annual total of ¥14.00 in 2015 to the most recent total annual payment of ¥56.00. This implies that the company grew its distributions at a yearly rate of about 15% over that duration. Despite the rapid growth in the dividend over the past number of years, we have seen the payments go down the past as well, so that makes us cautious.

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 First Bank Of Toyama has been growing its earnings per share at 49% 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 First Bank Of Toyama's Dividend

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. 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. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 2 warning signs for First Bank Of Toyama that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.