Nasdaq
华尔街日报J Trust Co., Ltd. (TSE:8508) Passed Our Checks, And It's About To Pay A JP¥17.00 Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that J Trust Co., Ltd. (TSE:8508) is about to go ex-dividend in just 4 days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. This means that investors who purchase J Trust's shares on or after the 29th of December will not receive the dividend, which will be paid on the 26th of March.
The company's next dividend payment will be JP¥17.00 per share, on the back of last year when the company paid a total of JP¥16.00 to shareholders. Based on the last year's worth of payments, J Trust has a trailing yield of 3.4% on the current stock price of JP¥472.00. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Fortunately J Trust's payout ratio is modest, at just 36% of profit.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
Check out our latest analysis for J Trust
Click here to see how much of its profit J Trust paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. It's encouraging to see J Trust has grown its earnings rapidly, up 26% a year 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 past 10 years, J Trust has increased its dividend at approximately 4.8% a year on average. Earnings per share have been growing much quicker than dividends, potentially because J Trust is keeping back more of its profits to grow the business.
The Bottom Line
Should investors buy J Trust for the upcoming dividend? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. Overall, J Trust looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.
While it's tempting to invest in J Trust for the dividends alone, you should always be mindful of the risks involved. For example, we've found 1 warning sign for J Trust that we recommend you consider before investing in the business.
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.
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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.