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Oct 16, 2024

Seibu GikenLtd (TSE:6223) Will Pay A Larger Dividend Than Last Year At ¥70.00 - Simply Wall St News

Stock Analysis Seibu Giken Co.,Ltd. (TSE:6223) will increase its dividend from last year's comparable payment on the 12th of March to ¥70.00. This takes the dividend yield to 4.3%, which shareholders

Stock Analysis

Seibu Giken Co.,Ltd. (TSE:6223) will increase its dividend from last year's comparable payment on the 12th of March to ¥70.00. This takes the dividend yield to 4.3%, which shareholders will be pleased with.

View our latest analysis for Seibu GikenLtd

Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, prior to this announcement, Seibu GikenLtd's dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow.

Looking forward, earnings per share is forecast to rise by 10.9% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 43% by next year, which is in a pretty sustainable range.

It's not possible for us to make a backward looking judgement just based on a short payment history. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself.

Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Seibu GikenLtd has been growing its earnings per share at 12% a year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Seibu GikenLtd's prospects of growing its dividend payments in the future.

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

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. As an example, we've identified 2 warning signs for Seibu GikenLtd that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.

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