Why You Might Be Interested In Aizawa Securities Group Co., Ltd. (TSE:8708) For Its Upcoming Dividend
Aizawa Securities Group Co., Ltd. (TSE:8708) stock is about to trade ex-dividend in four days. 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 important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. In other words, investors can purchase Aizawa Securities Group's shares before the 29th of September in order to be eligible for the dividend, which will be paid on the 1st of December.
The company's next dividend payment will be JP¥48.00 per share, on the back of last year when the company paid a total of JP¥117 to shareholders. Calculating the last year's worth of payments shows that Aizawa Securities Group has a trailing yield of 6.8% on the current share price of JP¥1730.00. If you buy this business for its dividend, you should have an idea of whether Aizawa Securities Group's dividend is reliable and sustainable. As a result, readers should always check whether Aizawa Securities Group has been able to grow its dividends, or if the dividend might be cut.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Fortunately Aizawa Securities Group's payout ratio is modest, at just 40% of profit.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
View our latest analysis for Aizawa Securities Group
Click here to see how much of its profit Aizawa Securities Group paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're not enthused to see that Aizawa Securities Group's earnings per share have remained effectively flat over the past five years. We'd take that over an earnings decline any day, but in the long run, the best dividend stocks all grow their earnings per share.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Aizawa Securities Group has delivered an average of 15% per year annual increase in its dividend, based on the past 10 years of dividend payments.
The Bottom Line
Is Aizawa Securities Group worth buying for its dividend? Earnings per share have been flat in recent years, although Aizawa Securities Group reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. We think this is a pretty attractive combination, and would be interested in investigating Aizawa Securities Group more closely.
On that note, you'll want to research what risks Aizawa Securities Group is facing. To help with this, we've discovered 2 warning signs for Aizawa Securities Group that you should be aware of before investing in their shares.
If you're in the market for strong dividend payers, we recommend checking our selection of top 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.