Get Ready for Bigger Returns: Synchro Food’s (TSE:3963) Upcoming Dividend Exceeds Last Year’s Payout!

Synchro Food Co., Ltd. is set to increase its dividend to ¥15.00, effective June 26. This change brings the dividend yield to a pleasing 3.6%, making it a great time for shareholders to enjoy better returns.

The good news is that Synchro Food’s earnings cover its dividend payments comfortably. This means the company is using most of its earnings to fuel growth. If the current trend continues, we can expect earnings per share (EPS) to grow by 12.5% over the next year. If Synchro Food maintains this path, the payout ratio could be around 52%, which appears sustainable moving forward.

However, we should note that Synchro Food has a relatively short history of dividend payments. While this doesn’t rule out the possibility of strong dividends in the future, it does mean we should be cautious until the company proves its reliability.

On a brighter note, investors might see potential in this stock due to its rising EPS, which has increased at an annual rate of 12% for the past five years. Given this growth and a low payout ratio, it seems likely that the company will continue to expand its dividend payments.

In conclusion, the increase in Synchro Food’s dividend is a positive sign, reflecting the sustainability of its payouts. Since the earnings easily cover these distributions, this could be a promising opportunity for investors. It’s important, though, to be mindful of other factors when considering an investment. For instance, there’s one warning sign for Synchro Food that potential investors should keep in mind.

For those on the lookout for other high-yield dividend options, consider exploring our collection of strong dividend payers.