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AuBEX (TSE:3583) Is Increasing Its Dividend To ¥35.00

Simply Wall St · 3d ago

AuBEX CORPORATION's (TSE:3583) dividend will be increasing from last year's payment of the same period to ¥35.00 on 26th of June. This will take the annual payment to 2.7% of the stock price, which is above what most companies in the industry pay.

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AuBEX's Payment Could Potentially Have Solid Earnings Coverage

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Before making this announcement, AuBEX was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.

If the trend of the last few years continues, EPS will grow by 24.4% over the next 12 months. If the dividend continues on this path, the payout ratio could be 13% by next year, which we think can be pretty sustainable going forward.

historic-dividend
TSE:3583 Historic Dividend January 8th 2026

View our latest analysis for AuBEX

AuBEX Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2016, the annual payment back then was ¥15.00, compared to the most recent full-year payment of ¥35.00. This implies that the company grew its distributions at a yearly rate of about 8.8% over that duration. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. AuBEX has impressed us by growing EPS at 24% per year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.

We Really Like AuBEX'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. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for AuBEX that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.