Teijin (TSE:3401) Will Pay A Dividend Of ¥25.00

Teijin Limited (TSE:3401) has announced that it will pay a dividend of ¥25.00 per share on the 4th of June. Based on this payment, the dividend yield on the company's stock will be 3.8%, which is an attractive boost to shareholder returns.This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Teijin Might Find It Hard To Continue The Dividend A big dividend yield for a few years doesn't mean much if it can't be sustained. Teijin is not generating a profit, but its free cash flows easily cover the dividend, leaving plenty for reinvestment in the business. This gives us some comfort about the level of the dividend payments. Analysts are expecting EPS to grow by 69.5% over the next 12 months. While it is good to see income moving in the right direction, it still looks like the company won't achieve profitability. The healthy cash flows are definitely a good sign though, so we wouldn't panic just yet, especially with the earnings growing. TSE:3401 Historic Dividend December 19th 2025 View our latest analysis for Teijin Dividend Volatility While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The annual payment during the last 10 years was ¥20.00 in 2015, and the most recent fiscal year payment was ¥50.00. This means that it has been growing its distributions at 9.6% per annum over that time. It's good to see the dividend growing at a decent rate, but the dividend has been cut at least once in the past. Teijin might have put its house in order since then, but we remain cautious. Dividend Growth Potential Is Shaky Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Teijin's EPS has fallen by approximately 63% per year during the past five years. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future. Over the next year, however, earnings are actually predicted to rise, but we would still be cautious until a track record of earnings growth can be built. The Dividend Could Prove To Be Unreliable In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Teijin's payments, as there could be some issues with sustaining them into the future. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. Overall, we don't think this company has the makings of a good income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Taking the debate a bit further, we've identified 2 warning signs for Teijin that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech