There's A Lot To Like About Media Research InstituteInc's (TSE:9242) Upcoming JP¥25.00 Dividend
Readers hoping to buy Media Research Institute,Inc. (TSE:9242) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Accordingly, Media Research InstituteInc investors that purchase the stock on or after the 30th of July will not receive the dividend, which will be paid on the 26th of October.
The company's next dividend payment will be JP¥25.00 per share, and in the last 12 months, the company paid a total of JP¥25.00 per share. Based on the last year's worth of payments, Media Research InstituteInc stock has a trailing yield of around 1.2% on the current share price of JP¥2020.00. If you buy this business for its dividend, you should have an idea of whether Media Research InstituteInc's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Media Research InstituteInc paid out just 9.5% of its profit last year, which we think is conservatively low and leaves plenty of margin for unexpected circumstances.
View our latest analysis for Media Research InstituteInc
Click here to see how much of its profit Media Research InstituteInc paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. For this reason, we're glad to see Media Research InstituteInc's earnings per share have risen 16% per annum over the last three years. The company has managed to grow earnings at a rapid rate, while reinvesting most of the profits within the business. This will make it easier to fund future growth efforts and we think this is an attractive combination - plus the dividend can always be increased later.
Given that Media Research InstituteInc has only been paying a dividend for a year, there's not much of a past history to draw insight from.
Final Takeaway
Is Media Research InstituteInc worth buying for its dividend? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. We think this is a pretty attractive combination, and would be interested in investigating Media Research InstituteInc more closely.
So while Media Research InstituteInc looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. To help with this, we've discovered 1 warning sign for Media Research InstituteInc that you should be aware of before investing in their shares.
A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.