Yondoshi Holdings Inc. (TSE:8008) has declared a dividend payment on November 11th, with investors set to receive ¥41.50 per share. This equates to an annual payment of 4.3% of the current stock price, which is higher than the industry average.
However, the company’s ability to sustain this dividend payment is in question, as it was previously paying out 134% of its earnings. With profits and cash flows not increasing, maintaining this level of dividend payout could be challenging. The next 12 months are expected to see EPS growth of 10.2%, but if the dividend continues on its current trajectory, the payout ratio could reach 138% in the coming year.
Yondoshi Holdings has a strong track record of stable dividends, with a compound annual growth rate of approximately 13% over the last 10 years. Despite this, the company’s earnings per share have declined by 8.8% annually over the past five years, which could impact future dividend growth.
In summary, while the dividend has remained stable, there are concerns about the sustainability of Yondoshi Holdings’ payments due to the high payout ratio. Investors may want to consider alternative income investments with a more stable dividend policy. Additionally, it’s important to be aware of potential warning signs when investing in the company.
Please note that this article is for informational purposes only and does not constitute financial advice. It is based on historical data and analyst forecasts, and does not take into account individual financial situations.