Aoyama Zaisan Networks CompanyLimited's (TSE:8929) Shareholders Will Receive A Bigger Dividend Than Last Year

Aoyama Zaisan Networks Company,Limited's (TSE:8929) dividend will be increasing from last year's payment of the same period to ¥33.00 on 30th of March. This will take the dividend yield to an attractive 3.1%, providing a nice boost to shareholder returns.

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Aoyama Zaisan Networks CompanyLimited's Payment Could Potentially Have Solid Earnings Coverage

A big dividend yield for a few years doesn't mean much if it can't be sustained. Before making this announcement, Aoyama Zaisan Networks CompanyLimited was easily earning enough to cover the dividend. 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 1.9% over the next year. If the dividend continues on this path, the payout ratio could be 46% by next year, which we think can be pretty sustainable going forward.

See our latest analysis for Aoyama Zaisan Networks CompanyLimited

Aoyama Zaisan Networks CompanyLimited Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2015, the dividend has gone from ¥7.50 total annually to ¥51.00. This implies that the company grew its distributions at a yearly rate of about 21% over that duration. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that Aoyama Zaisan Networks CompanyLimited has been growing its earnings per share at 25% a year over the past five years. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future.

Aoyama Zaisan Networks CompanyLimited Looks Like A Great Dividend Stock

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Distributions are quite easily covered by earnings, which are also being converted to cash flows. 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. Now, if you want to look closer, it would be worth checking out our free research on Aoyama Zaisan Networks CompanyLimited management tenure, salary, and performance. 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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