An In-Depth Look at Mitsui Fudosan Co Ltd's Upcoming Dividend and Financial Health
Mitsui Fudosan Co Ltd (MTSFF, Financial) recently announced a dividend of $37 per share, payable on 0000-00-00, with the ex-dividend date set for 2024-03-28. 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 look into Mitsui Fudosan Co Ltd's dividend performance and assess its sustainability.
What Does Mitsui Fudosan Co Ltd Do?
Mitsui Fudosan is one of the three big Japanese real estate companies, together with Mitsubishi Estate and Sumitomo Realty. Although its traditional office district is Nihonbashi, it has developed large office projects across Tokyo, as well as London and New York City. Mitsui Fudosan derives a higher portion of its revenue and profits from retail leasing than Mitsubishi Estate and Sumitomo Realty with an extensive portfolio of urban retail buildings, shopping malls, and outlet parks. It is in the process of expanding the latter two formats across Asia. Like Sumitomo Realty, it is active in condo development and residential real estate brokerage, and its Mitsui Home unit is a second-tier builder of detached houses.
A Glimpse at Mitsui Fudosan Co Ltd's Dividend History
Mitsui Fudosan Co Ltd has maintained a consistent dividend payment record since 2014. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Mitsui Fudosan Co Ltd's Dividend Yield and Growth
As of today, Mitsui Fudosan Co Ltd currently has a 12-month trailing dividend yield of 1.44% and a 12-month forward dividend yield of 1.60%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Mitsui Fudosan Co Ltd's annual dividend growth rate was 12.10%. Extended to a five-year horizon, this rate decreased to 8.50% per year. And over the past decade, Mitsui Fudosan Co Ltd's annual dividends per share growth rate stands at an impressive 11.10%.
Based on Mitsui Fudosan Co Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Mitsui Fudosan Co Ltd stock as of today is approximately 2.17%.
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 2023-12-31, Mitsui Fudosan Co Ltd's dividend payout ratio is 0.34.
Mitsui Fudosan Co Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Mitsui Fudosan Co Ltd's profitability 7 out of 10 as of 2023-12-31, 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. Mitsui Fudosan Co Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Mitsui Fudosan Co Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Mitsui Fudosan Co Ltd's revenue has increased by approximately 7.10% per year on average, a rate that outperforms approximately 57.88% 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, Mitsui Fudosan Co Ltd's earnings increased by approximately -0.10% per year on average, a rate that outperforms approximately 47.17% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -1.00%, which outperforms approximately 41.78% of global competitors.
Concluding Thoughts on Mitsui Fudosan Co Ltd's Dividend Outlook
In conclusion, Mitsui Fudosan Co Ltd's consistent dividend history, coupled with a solid payout ratio and strong profitability, presents a reassuring picture for investors focused on income. The company's ability to grow dividends, backed by a robust revenue and earnings model, suggests a favorable outlook for future dividend sustainability. While the growth metrics provide a mixed view, the overall financial health of Mitsui Fudosan Co Ltd indicates that it is well-positioned to continue rewarding shareholders with dividends. As investors consider the next steps, they may find value in exploring other high-dividend yield opportunities. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
