Saison Technology Co., Ltd. Declares Dividend Payment
Saison Technology Co., Ltd. (TSE:9640) has announced a forthcoming dividend of ¥45.00, scheduled for distribution on December 8th. This dividend represents an annual yield of 4.6% relative to the stock’s current value, surpassing the industry average.
In our analysis, we have identified 21 U.S. stocks projected to offer a dividend yield exceeding 6% in the coming year. Access the complete list for no charge.
Future Dividend Sustainability in Question for Saison Technology
While robust dividend yields are desirable, their sustainability is paramount. Prior to this announcement, Saison Technology’s dividend accounted for a significant portion of its earnings, with a particularly concerning payout—150% of cash flows. This critical factor raises the specter of reduced cash inflows, potentially compelling the company to diminish future dividends.
Projected earnings per share may experience an 8.0% increase over the next year, should current trends persist. Yet, if dividend practices follow recent patterns, pressures may mount on the balance sheet, as the payout ratio could escalate to an alarming 98% in the upcoming year. TSE:9640 Historical Dividend Record as of September 11, 2025
Explore our latest analysis on Saison Technology
Track Record of Saison Technology’s Dividends
Although the company’s history of dividend payments has been commendably stable, a mere eight years of data necessitate caution before drawing definitive conclusions. Since 2017, when the annual dividend was set at ¥35.00, the current year’s payment has escalated to ¥90.00, indicating an approximate annual growth rate of 13%.
Nonetheless, the brevity of this payment history renders long-term sustainability uncertain, urging prudent evaluation.
Potential for Dividend Growth
Despite these uncertainties, investors may find the company’s payment history compelling. Saison Technology has demonstrated an admirable achievement of growing its earnings per share at a rate of 8.0% annually over the last five years.
Recently, the firm has managed to increase its earnings at a commendable pace; however, with the payout ratio nearing the upper threshold, prospects for dividend growth remain restricted.
Concerns Surrounding Dividend Reliability
In summary, Saison Technology may not represent an ideal choice for dividend-focused investors, despite the absence of cuts to this year’s dividends. Strong earnings growth suggests that it holds potential for becoming a more favorable dividend stock in the future; nevertheless, current excessive payouts warrant wariness in relying on this stock for consistent dividend income.
Investors generally exhibit a preference for entities with steady, predictable dividend policies as opposed to those with irregular distributions. Indeed, considerations beyond dividends are essential in stock analysis.
Further, we have identified two warning signs concerning Saison Technology that investors should heed moving forward. Dividend aficionados may also wish to check our curated list of high-yield dividend stocks.
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