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    Here's What We Like About Sanyo Denki's (TSE:6516) Upcoming Dividend

    Simply Wall St·09/24/2026 21:03:39
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    Sanyo Denki Co., Ltd. (TSE:6516) is about to trade ex-dividend in the next 4 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 because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase Sanyo Denki's shares on or after the 29th of September, you won't be eligible to receive the dividend, when it is paid on the 15th of December.

    The company's upcoming dividend is JP¥80.00 a share, following on from the last 12 months, when the company distributed a total of JP¥170 per share to shareholders. Based on the last year's worth of payments, Sanyo Denki has a trailing yield of 3.1% on the current stock price of JP¥5420.00. If you buy this business for its dividend, you should have an idea of whether Sanyo Denki's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.

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    Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Sanyo Denki paid out a comfortable 35% of its profit last year. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Over the last year it paid out 71% of its free cash flow as dividends, within the usual range for most companies.

    It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously.

    View our latest analysis for Sanyo Denki

    Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

    historic-dividend
    TSE:6516 Historic Dividend September 24th 2026

    Have Earnings And Dividends Been Growing?

    Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. That's why it's comforting to see Sanyo Denki's earnings have been skyrocketing, up 22% per annum for the past five years.

    Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, Sanyo Denki has lifted its dividend by approximately 19% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.

    The Bottom Line

    Has Sanyo Denki got what it takes to maintain its dividend payments? Earnings per share have grown at a nice rate in recent times and over the last year, Sanyo Denki paid out less than half its earnings and a bit over half its free cash flow. It's a promising combination that should mark this company worthy of closer attention.

    In light of that, while Sanyo Denki has an appealing dividend, it's worth knowing the risks involved with this stock. For example - Sanyo Denki has 2 warning signs we think you should be aware of.

    Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.