Internet Initiative Co., Ltd. TSE 3774 will pay a dividend of 17.18 yen on July 1st. This results in an annual payout of 1.2% of the current share price, which is unfortunately below what the industry is paying.
Check out our latest analysis for Internet Initiatives.
Internet Initiative payments cover solid revenue
While yield is important, another factor to consider about a company’s dividend is whether the company’s current dividend levels are achievable. Prior to this announcement, Internet Initiatives was generating enough revenue to easily cover its dividend. This means that most of the money the company earns is spent on growing the company.
EPS is expected to increase by 67.9% next year. Assuming the dividend continues in line with recent trends, the payout ratio could be 23% by next year, which would be well within a sustainable range.
Internet initiatives with a proven track record
The company has a long history of paying stable dividends. Since 2014, the annual payment at that time was 5.50 yen, while the most recent annual payment was 34.36 yen. This means that the company has increased its distribution at a rate of approximately 20% per year over that period. Dividends have therefore grown fairly quickly, and even more surprisingly, there have been no noticeable declines over this period.
Dividends are likely to increase
Investors in the company will be happy to receive dividend income for some time to come. We’re impressed with Internet Initiative Japan, which grew its EPS at 39% per year over the last five years. Rapid earnings growth and a low dividend payout ratio suggest that this company is effectively reinvesting in its business. If this trend continues, this company may have a bright future ahead of it.
Internet Initiatives looks like a high dividend stock
Overall, growing dividends is always a good thing, and we think Internet Initiatives is a strong income stock due to its track record and earnings growth. The company easily earns enough to cover its dividend payments, and it’s great to see these earnings converting into cash flow. Considering these things, this looks like a good dividend opportunity.
It’s important to note that companies with a consistent dividend policy generate greater investor confidence than companies with an erratic dividend policy. At the same time, there are other factors that readers should be aware of before pouring capital into stocks. Companies that are growing earnings tend to make the best dividend stocks over the long term.See what her eight analysts we track predict about Internet Initiatives For free The company’s public analyst forecasts are also included.Looking for more high-yield dividend ideas? Try ours A group of people with strong dividends.
Valuation is complex, but we help make it simple.
Please check it out internet initiative Could be overvalued or undervalued, check out our comprehensive analysis. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.
See free analysis
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
