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Tokyo Sangyo (TSE:8070) Has Announced A Dividend Of ¥19.00

Simply Wall St · 6d ago

Tokyo Sangyo Co., Ltd.'s (TSE:8070) investors are due to receive a payment of ¥19.00 per share on 29th of June. This will take the annual payment to 3.8% of the stock price, which is above what most companies in the industry pay.

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Tokyo Sangyo's Future Dividend Projections Appear Well Covered By Earnings

While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable. However, prior to this announcement, Tokyo Sangyo's dividend was comfortably covered by both cash flow and earnings. As a result, a large proportion of what it earned was being reinvested back into the business.

Over the next year, EPS could expand by 10.5% if recent trends continue. If the dividend continues along recent trends, we estimate the payout ratio will be 35%, which is in the range that makes us comfortable with the sustainability of the dividend.

historic-dividend
TSE:8070 Historic Dividend February 15th 2026

Check out our latest analysis for Tokyo Sangyo

Tokyo Sangyo Doesn't Have A Long Payment History

The dividend's track record has been pretty solid, but with only 5 years of history we want to see a few more years of history before making any solid conclusions. Since 2021, the annual payment back then was ¥24.00, compared to the most recent full-year payment of ¥38.00. This implies that the company grew its distributions at a yearly rate of about 9.6% over that duration. Tokyo Sangyo has been growing its dividend at a decent rate, and the payments have been stable. However, the payment history is very short, so there is no evidence yet that the dividend can be sustained over a full economic cycle.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Tokyo Sangyo has impressed us by growing EPS at 11% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Tokyo Sangyo Looks Like A Great Dividend Stock

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for Tokyo Sangyo that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.