Cross Marketing Group Inc. Announces Increased Dividend Payment
The board of Cross Marketing Group Inc. (TSE:3675) has revealed its decision to distribute a dividend of ¥7.50 on March 3rd, marking an enhancement from last year’s corresponding payment.
This updated disbursement results in a dividend yield of 2.2%, a figure that aligns with industry standards.
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Solid Earnings Coverage Enhances Dividend Appeal
While the dividend yield can be indicative, its significance diminishes if the payments are not sustainable. Prior to this announcement, Cross Marketing Group’s dividend was well-supported by both its cash flow and earnings, signifying that a substantial portion of its earnings is reinvested for growth.
Looking forward, earnings per share (EPS) could experience a 22.4% growth if current trends persist. Should the dividend trajectory remain steady, the payout ratio could stabilize around 19% by the next fiscal year, a level we consider to be adequately sustainable.TSE:3675 Historic Dividend as of October 6, 2025
Dividend Fluctuation History
Despite the company’s extensive history of dividend payments, it has undergone at least one reduction in the past decade. Observing data from 2015, the annual payment was a modest ¥4.50, significantly elevated to ¥15.00 recently.
This progression illustrates an average growth rate of approximately 13% annually over this period. Although dividends have escalated substantially, prior reductions raise questions regarding the stock’s reliability as a continuous income source.
Prospects for Dividend Growth Appear Positive
The instability of the dividend emphasizes the importance of monitoring EPS growth. Over the past five years, Cross Marketing Group has experienced a consistent rise in EPS at a remarkable annual rate of 22%.
Coupled with a low payout ratio, this synergy presents an ideal scenario for a dividend stock, indicating that increased distributions are plausible in the future.
Favorable Outlook for Cross Marketing Group’s Dividend
In summary, a dividend increase is a positive development, positioning Cross Marketing Group as a compelling income stock given its solid track record coupled with expanding earnings.
The company generates ample earnings to accommodate its dividend obligations, and it is encouraging to observe this profitability translating into cash flow. Given these considerations, the stock exhibits substantial potential as a dividend investment.
Entities maintaining a stable dividend policy are likely to attract greater investor interest compared to those exhibiting inconsistency. Nonetheless, various factors should be evaluated when assessing stock performance.
Notably, we have identified two warning signs for Cross Marketing Group that warrant investor attention. Dividend investors may also wish to examine our curated list of high-yield dividend stocks.
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