Read This Before Considering Nitori Holdings Co., Ltd. (TSE:9843) For Its Upcoming JP¥77.00 Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Nitori Holdings Co., Ltd. (TSE:9843) is about to go ex-dividend in just 4 days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Nitori Holdings investors that purchase the stock on or after the 29th of September will not receive the dividend, which will be paid on the 3rd of December. The company's upcoming dividend is JP¥77.00 a share, following on from the last 12 months, when the company distributed a total of JP¥154 per share to shareholders. Based on the last year's worth of payments, Nitori Holdings stock has a trailing yield of around 1.1% on the current share price of JP¥14240.00. If you buy this business for its dividend, you should have an idea of whether Nitori Holdings's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. 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. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Nitori Holdings has a low and conservative payout ratio of just 21% of its income after tax. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Over the last year, it paid out more than three-quarters (88%) of its free cash flow generated, which is fairly high and may be starting to limit reinvestment in the business. It's positive to see that Nitori Holdings's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Check out our latest analysis for Nitori Holdings Click here to see the company's payout ratio, plus analyst estimates of its future dividends. TSE:9843 Historic Dividend September 24th 2025 Have Earnings And Dividends Been Growing? Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. This is why it's a relief to see Nitori Holdings earnings per share are up 2.7% per annum over the last five years. A payout ratio of 21% looks like a tacit signal from management that reinvestment opportunities in the business are low. In line with limited earnings growth in recent years, this is not the most appealing combination. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past 10 years, Nitori Holdings has increased its dividend at approximately 9.9% a year on average. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders. To Sum It Up From a dividend perspective, should investors buy or avoid Nitori Holdings? Earnings per share growth has been modest, and it's interesting that Nitori Holdings is paying out less than half of its earnings and more than half its cash flow to shareholders in the form of dividends. While it does have some good things going for it, we're a bit ambivalent and it would take more to convince us of Nitori Holdings's dividend merits. Ever wonder what the future holds for Nitori Holdings? See what the 11 analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.