The board of Kyushu Electric Power Company, Incorporated (TSE:9508) has announced that it will pay a dividend of ¥25.00 per share on the 27th of June. This means the annual payment is 3.6% of the current stock price, which is above the average for the industry.
See our latest analysis for Kyushu Electric Power Company
Kyushu Electric Power Company’s Future Dividend Projections Appear Well Covered By Earnings
A big dividend yield for a few years doesn’t mean much if it can’t be sustained. However, prior to this announcement, Kyushu Electric Power Company’s dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business.
Over the next year, EPS is forecast to expand by 7.2%. If the dividend continues along recent trends, we estimate the payout ratio will be 28%, which is in the range that makes us comfortable with the sustainability of…
