Exploring the Dividend Performance and Sustainability of Nippon Sanso Holdings Corp (TYNPF, Financial)
Nippon Sanso Holdings Corp (TYNPF) recently announced a dividend of $20 per share, payable on a date yet to be determined, with the ex-dividend date set for 2023-09-28. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Nippon Sanso Holdings Corps dividend performance and assess its sustainability.
What Does Nippon Sanso Holdings Corp Do?
Nippon Sanso Holdings Group is the leading industrial gases manufacturer in Japan. The company's three main business domains are the industrial gases business, the electronics business, and the Thermos business. The company has a global presence with a majority of its revenue coming from the gas business in Japan. The industrial gases operation supplies the steelmaking, chemical, and automotive industries and provides medical products. The industrial gases domain dramatically expanded following the Praxair, Inc. acquisition that added a new business vertical. The electronics business has a supply chain in east Asia and is a hub for major semiconductor manufacturers.
A Glimpse at Nippon Sanso Holdings Corp's Dividend History
Nippon Sanso Holdings Corp has maintained a consistent dividend payment record since 2020. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Nippon Sanso Holdings Corp's Dividend Yield and Growth
As of today, Nippon Sanso Holdings Corp currently has a 12-month trailing dividend yield of 1.14% and a 12-month forward dividend yield of 1.25%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Nippon Sanso Holdings Corp's annual dividend growth rate was 10.70%. Extended to a five-year horizon, this rate decreased to 10.30% per year. And over the past decade, Nippon Sanso Holdings Corp's annual dividends per share growth rate stands at an impressive 13.10%.
Based on Nippon Sanso Holdings Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Nippon Sanso Holdings Corp stock as of today is approximately 1.86%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Nippon Sanso Holdings Corp's dividend payout ratio is 0.20.
Nippon Sanso Holdings Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Nippon Sanso Holdings Corp's profitability 8 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Nippon Sanso Holdings Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Nippon Sanso Holdings Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Nippon Sanso Holdings Corp's revenue has increased by approximately 11.70% per year on average, a rate that outperforms approximately 57.14% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Nippon Sanso Holdings Corp's earnings increased by approximately 11.10% per year on average, a rate that outperforms approximately 47.53% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 10.10%, outperforms approximately 49.42% of global competitors.
Next Steps
In conclusion, Nippon Sanso Holdings Corp's consistent dividend payments, impressive growth rate, healthy payout ratio, strong profitability, and robust growth metrics paint a bright picture for its dividend sustainability. These factors indicate that the company is well-positioned to continue rewarding its shareholders with dividends in the foreseeable future. However, like all investments, it is crucial to continue monitoring these metrics and the overall performance of the company.
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