WEBULL

Hamamatsu Photonics K.K (TSE:6965) Is Paying Out A Dividend Of ¥19.00

Simply Wall St · 6d ago

Hamamatsu Photonics K.K. (TSE:6965) will pay a dividend of ¥19.00 on the 3rd of June. Based on this payment, the dividend yield on the company's stock will be 2.2%, which is an attractive boost to shareholder returns.

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.

Hamamatsu Photonics K.K's Payment Could Potentially Have Solid Earnings Coverage

If the payments aren't sustainable, a high yield for a few years won't matter that much. Prior to this announcement, Hamamatsu Photonics K.K's dividend was making up a very large proportion of earnings and perhaps more concerning was that it was 2,002% of cash flows. Paying out such a high proportion of cash flows certainly exposes the company to cutting the dividend if cash flows were to reduce.

Over the next year, EPS is forecast to expand by 12.7%. If recent patterns in the dividend continues, the payout ratio in 12 months could be 77% which is a bit high but can definitely be sustainable.

historic-dividend
TSE:6965 Historic Dividend January 8th 2026

View our latest analysis for Hamamatsu Photonics K.K

Hamamatsu Photonics K.K Has A Solid Track Record

The company has an extended history of paying stable dividends. The annual payment during the last 10 years was ¥15.50 in 2016, and the most recent fiscal year payment was ¥38.00. This implies that the company grew its distributions at a yearly rate of about 9.4% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

The Dividend's Growth Prospects Are Limited

The company's investors will be pleased to have been receiving dividend income for some time. However, initial appearances might be deceiving. It's not great to see that Hamamatsu Photonics K.K's earnings per share has fallen at approximately 2.1% per year over the past five years. A modest decline in earnings isn't great, and it makes it quite unlikely that the dividend will grow in the future unless that trend can be reversed. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this can turn into a longer term trend.

Hamamatsu Photonics K.K's Dividend Doesn't Look Sustainable

Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. Although they have been consistent in the past, we think the payments are a little high to be sustained. We don't think Hamamatsu Photonics K.K is a great stock to add to your portfolio if income is your focus.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. As an example, we've identified 3 warning signs for Hamamatsu Photonics K.K that you should be aware of before investing. Is Hamamatsu Photonics K.K not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.