The board of Nissan Tokyo Sales Holdings Co., Ltd. (TSE:8291) has announced that it will pay a dividend of ¥12.00 per share on the 3rd of December. The dividend yield will be 4.7% based on this payment which is still above the industry average.
AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part – they are all under $10bn in marketcap – there is still time to get in early.
Nissan Tokyo Sales Holdings’ Projected Earnings Seem Likely To Cover Future Distributions
A big dividend yield for a few years doesn’t mean much if it can’t be sustained. Prior to this announcement, Nissan Tokyo Sales Holdings’ earnings easily covered the dividend, but free cash flows were negative. In general, we consider cash flow to be more important than earnings, so we would be cautious about relying on the sustainability of this dividend.
Over the next year, EPS could expand by 39.7% if recent trends continue. If the dividend continues on this path, the payout ratio could be 29% by next year, which we think can be pretty sustainable going forward.
TSE:8291 Historic Dividend August 12th 2025
See our latest analysis for Nissan Tokyo Sales Holdings
Dividend Volatility
The company’s dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was ¥4.00 in 2015, and the most recent fiscal year payment was ¥24.00. This works out to be a compound annual growth rate (CAGR) of approximately 20% a year over that time. It is great to see strong growth in the dividend payments, but cuts are concerning as it may indicate the payout policy is too ambitious.
The Dividend Looks Likely To Grow
Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Nissan Tokyo Sales Holdings has seen EPS rising for the last five years, at 40% per annum. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.
In Summary
Overall, we don’t think this company makes a great dividend stock, even though the dividend wasn’t cut this year. While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. We don’t think Nissan Tokyo Sales Holdings is a great stock to add to your portfolio if income is your focus.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we’ve identified 2 warning signs for Nissan Tokyo Sales Holdings that investors need to be conscious of moving forward. Is Nissan Tokyo Sales Holdings not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
Valuation is complex, but we’re here to simplify it.
Discover if Nissan Tokyo Sales Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
AloJapan.com