Internet Initiative Co., Ltd. Co., Ltd. (TSE: 3774) announced that it will pay a dividend of 17.18 yen per share on July 1st. This would give him an annual payout of 1.2% of the current stock price, which is unfortunately below what the industry is paying.
Check out our latest analysis for Internet Initiatives.
Internet Initiative payments cover solid revenue
Although the dividend yield is a bit low, sustainability of payments is also an important part of evaluating income stocks. However, Internet Initiative’s earnings easily cover the dividend. This means that most of the revenue is reserved for business growth.
EPS is expected to grow by 68.1% over the next 12 months. If the dividend continues at this rate, the payout ratio could be 23% by next year, which we think is quite sustainable going forward.
Internet initiatives with a proven track record
The company has a consistent track record of paying dividends with little volatility. Since 2014, the total annual dividend has increased from 5.50 yen to 34.36 yen. This means that it has been increasing its distributions at a rate of 20% per year over that time. 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. Earnings per share are growing steadily and the dividend payout ratio is low, making it very easy to increase dividends in the future, so we believe this is an ideal combination for a dividend stock.
Internet Initiatives looks like a high dividend stock
In summary, it’s always positive to see a growing dividend, and we’re particularly pleased with its overall sustainability. Distributions are easily covered by profits and also converted into cash flow. Considering all these factors, we think this has solid potential as a dividend stock.
Companies with stable dividend policies are likely to attract more investor interest than companies that suffer from a more inconsistent approach. However, there are other things investors should consider when analyzing stock performance. Increasing earnings generally bodes well for the future value of a company’s dividend payments. See if the 8 analysts we track at Internet Initiative Japan predict the company’s growth will continue. free A report on analyst forecasts for a company.Is the Internet Initiative the opportunity you’ve been looking for? Why not check it out? Selection of high dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, 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.
