Is It Smart To Buy Hitachi Construction Machinery Co., Ltd. (TSE:6305) Before It Goes Ex-Dividend?

Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Hitachi Construction Machinery Co., Ltd. (TSE:6305) is about to trade ex-dividend in the next 3 days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Thus, you can purchase Hitachi Construction Machinery's shares before the 30th of March in order to receive the dividend, which the company will pay on the 1st of June. The company's next dividend payment will be JP¥100.00 per share, on the back of last year when the company paid a total of JP¥175 to shareholders. Based on the last year's worth of payments, Hitachi Construction Machinery stock has a trailing yield of around 3.2% on the current share price of JP¥5531.00. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether Hitachi Construction Machinery has been able to grow its dividends, or if the dividend might be cut. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. 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. Hitachi Construction Machinery is paying out an acceptable 52% of its profit, a common payout level among most companies. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It distributed 34% of its free cash flow as dividends, a comfortable payout level for most companies. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Check out our latest analysis for Hitachi Construction Machinery Click here to see the company's payout ratio, plus analyst estimates of its future dividends. TSE:6305 Historic Dividend March 26th 2026 Have Earnings And Dividends Been Growing? Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. Fortunately for readers, Hitachi Construction Machinery's earnings per share have been growing at 13% a year for the past five years. Hitachi Construction Machinery is paying out a bit over half its earnings, which suggests the company is striking a balance between reinvesting in growth, and paying dividends. This is a reasonable combination that could hint at some further dividend increases in the future. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Hitachi Construction Machinery has lifted its dividend by approximately 11% a year on average. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years. The Bottom Line From a dividend perspective, should investors buy or avoid Hitachi Construction Machinery? Hitachi Construction Machinery's growing earnings per share and conservative payout ratios make for a decent combination. We also like that it paid out a lower percentage of its cash flow. It's a promising combination that should mark this company worthy of closer attention. In light of that, while Hitachi Construction Machinery has an appealing dividend, it's worth knowing the risks involved with this stock. For example, we've found 2 warning signs for Hitachi Construction Machinery that we recommend you consider before investing in the business. 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. Valuation is complex, but we're here to simplify it.Discover if Hitachi Construction Machinery 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