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Daiichi Jitsugyo (TSE:8059) Has Announced That It Will Be Increasing Its Dividend To ¥71.00

Simply Wall St · 3d ago

Daiichi Jitsugyo Co., Ltd. (TSE:8059) will increase its dividend from last year's comparable payment on the 25th of June to ¥71.00. This will take the dividend yield to an attractive 4.7%, providing a nice boost to shareholder returns.

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Daiichi Jitsugyo's Payment Could Potentially Have Solid Earnings Coverage

While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. However, Daiichi Jitsugyo'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 could expand by 17.4% if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could be 39% by next year, which is in a pretty sustainable range.

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TSE:8059 Historic Dividend January 8th 2026

Check out our latest analysis for Daiichi Jitsugyo

Dividend Volatility

The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2016, the annual payment back then was ¥26.67, compared to the most recent full-year payment of ¥142.00. This implies that the company grew its distributions at a yearly rate of about 18% over that duration. Daiichi Jitsugyo has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, so we would be cautious about buying this stock solely for the dividend income.

The Dividend Looks Likely To Grow

With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. We are encouraged to see that Daiichi Jitsugyo has grown earnings per share at 17% per year over the past five years. Daiichi Jitsugyo definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Daiichi Jitsugyo Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Daiichi Jitsugyo 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 example, we've picked out 1 warning sign for Daiichi Jitsugyo that investors should know about before committing capital to this stock. Is Daiichi Jitsugyo not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.