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ENSHU (TSE:6218) Is Due To Pay A Dividend Of ¥10.00

Simply Wall St · 3d ago

The board of ENSHU Limited (TSE:6218) has announced that it will pay a dividend of ¥10.00 per share on the 26th of June. Based on this payment, the dividend yield will be 1.9%, which is fairly typical for the industry.

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ENSHU Might Find It Hard To Continue The Dividend

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. While ENSHU is not profitable, it is paying out less than 75% of its free cash flow, which means that there is plenty left over for reinvestment into the business. In general, cash flows are more important than the more traditional measures of profit so we feel pretty comfortable with the dividend at this level.

EPS has fallen by an average of 63.6% in the past, so this could continue over the next year. This means that the company will be unprofitable, but cash flows are more important when considering the dividend and as the current cash payout ratio is pretty healthy, we don't think there is too much reason to worry.

historic-dividend
TSE:6218 Historic Dividend January 8th 2026

View our latest analysis for ENSHU

ENSHU's Dividend Has Lacked Consistency

Even in its relatively short history, the company has reduced the dividend at least once. If the company cuts once, it definitely isn't argument against the possibility of it cutting in the future. The last annual payment of ¥10.00 was flat on the annual payment from7 years ago. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past.

The Dividend Has Limited Growth Potential

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Over the past five years, it looks as though ENSHU's EPS has declined at around 64% a year. This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future.

The Dividend Could Prove To Be Unreliable

In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about ENSHU's payments, as there could be some issues with sustaining them into the future. In the past, the payments have been unstable, but over the short term the dividend could be reliable, with the company generating enough cash to cover it. We don't think ENSHU is a great stock to add to your portfolio if income is your focus.

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. Case in point: We've spotted 4 warning signs for ENSHU (of which 1 doesn't sit too well with us!) you should know about. Is ENSHU not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.