Kato Sangyo’s (TSE:9869) Shareholders Will Receive A Bigger Dividend Than Last Year

Kato Sangyo Co., Ltd.’s (TSE:9869) dividend will be increasing to ¥58.00 on December 25th, up from last year’s payment for the same period. This brings the dividend yield to 2.6%, which is higher than the industry average.

Kato Sangyo’s earnings easily cover the dividend, indicating that the business is using most of its earnings to support its growth. Looking ahead, there is potential for a 17.8% increase in earnings per share over the next year if the current trend continues. The payout ratio is expected to be 24% next year, which is considered sustainable.

The company has a strong track record of paying dividends, with consistent growth in distributions over the years. The dividend has increased from ¥44.00 in 2014 to ¥113.00 most recently, growing at a rate of 9.9% per year. This consistent growth is valuable for long-term investors.

Investors who have held shares in Kato Sangyo for the past few years have seen a growth in dividend income. The company has been growing its earnings per share at 18% annually over the last five years, indicating good reinvestment and potential for further dividend increases.

Overall, Kato Sangyo’s dividend increase is a positive sign, supported by its track record and growing earnings. The company’s earnings comfortably cover distributions, and it generates sufficient cash flow. With these factors in mind, Kato Sangyo appears to have solid potential as a dividend stock.

It is important to consider a company’s consistent dividend policy for investor confidence. Additionally, factors such as insider shareholdings and management’s stake in the company should be taken into account before investing. For more high-yielding dividend ideas, consider exploring a collection of strong dividend payers.