Platz Co., Ltd. (TSE:7813) has announced a dividend payment of ¥14.00 per share on September 27th. This will result in a dividend yield of 1.9%, which is a positive boost for shareholders.
Platz’s earnings easily cover the distributions, as the dividend was previously supported by cash flow and earnings. The company has been reinvesting a large portion of its earnings back into the business, indicating sustainability.
Looking ahead, earnings per share could increase by 4.1% over the next year if current trends continue. The payout ratio is expected to be around 17% by next year, which is considered sustainable.
Although Platz’s dividend history has lacked consistency, with fluctuations in the past, the recent increase to ¥14.00 is a positive sign. Earnings have been growing at a rate of 4.1% annually over the last five years, suggesting potential for stronger dividends in the future.
In summary, while the dividend has remained consistent, there are concerns about the company’s dividend record. Despite this, Platz could be a good dividend stock going forward. Investors should consider market movements and other factors when analyzing stock performance.
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