Shikoku Electric Power Company, Incorporated (TSE:9507) has announced that it will pay a dividend of ¥20.00 per share on the 27th of June. This makes the dividend yield 3.3%, which is above the industry average.
Check out our latest analysis for Shikoku Electric Power Company
Shikoku Electric Power Company’s Payment Could Potentially Have Solid Earnings Coverage
Impressive dividend yields are good, but this doesn’t matter much if the payments can’t be sustained. However, Shikoku Electric Power Company’s earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.
Looking forward, earnings per share is forecast to fall by 16.7% over the next year. Assuming the dividend continues along recent trends, we believe the payout ratio could be 19%, which we are pretty comfortable with and we think is feasible on an earnings basis.
