San ju San Financial GroupInc (TSE:7322) Is Due To Pay A Dividend Of ¥64.00

The board of San ju San Financial Group,Inc. (TSE:7322) has announced that it will pay a dividend on the 23rd of June, with investors receiving ¥64.00 per share. This takes the annual payment to 3.0% of the current stock price, which is about average for the industry.

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San ju San Financial GroupInc's Payment Expected To Have Solid Earnings Coverage

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important.

San ju San Financial GroupInc has a good history of paying out dividends, with its current track record at 7 years. Past distributions do not necessarily guarantee future ones, but San ju San Financial GroupInc's payout ratio of 35% is a good sign for current shareholders as this means that earnings decently cover dividends.

Over the next year, EPS could expand by 25.2% if recent trends continue. Assuming the dividend continues along recent trends, we think the future payout ratio could be 30% by next year, which is in a pretty sustainable range.

Check out our latest analysis for San ju San Financial GroupInc

San ju San Financial GroupInc Is Still Building Its Track Record

It is great to see that San ju San Financial GroupInc has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. Since 2018, the dividend has gone from ¥72.00 total annually to ¥128.00. This works out to be a compound annual growth rate (CAGR) of approximately 8.6% a year over that time. Investors will likely want to see a longer track record of growth before making decision to add this to their income portfolio.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. It's encouraging to see that San ju San Financial GroupInc has been growing its earnings per share at 25% a year over the past five years. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend.

We Really Like San ju San Financial GroupInc's Dividend

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. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Are management backing themselves to deliver performance? Check their shareholdings in San ju San Financial GroupInc in our latest insider ownership analysis. 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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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.