Hello everyone. I’m @olivertomolife and I love investing and shareholder benefits!
The appeal of investing in stocks lies in the fact that you can earn profits from price increases and receive special benefits, and I believe that dividends are one of them.
I believe that dividends are one of the most attractive aspects of stock investment.
However, beginners sometimes make mistakes by making decisions based on dividend yields alone.
Therefore, it is necessary to pay attention to the dividend payout ratio, which is important in addition to the dividend yield.
In this article, I’m going to introduce three stocks with good dividend payout ratios that beginners can invest in without worry!
The author has three years of investment experience and has experience in the securities industry.
By reading this article, you’ll get to know companies with a well-balanced dividend payout ratio!
What is the dividend payout ratio?
The dividend payout ratio is a number that indicates how much of the profits a company earns from its business is returned to shareholders.
Therefore, a company with a high dividend payout ratio can be said to have a high return to shareholders.
At first glance, this sounds good, but a high payout ratio is not necessarily good.
Since there is no money left in the company, there is a disadvantage that it is difficult to expand the business.
In addition, new companies often have a low dividend payout ratio because they may use the profits to fund their business.
By investing profits in human resources and equipment as a company, shareholders have the advantage of getting a return from the company.
Average dividend payout ratio of listed companies
The average dividend payout ratio of listed companies in 2020 is 32% in Japan, so companies that are close to that number are stocks that pay stable dividends.
However, be careful not to overestimate the dividend payout ratio, as a low payout ratio is not necessarily a good thing.
In general, a dividend payout ratio of between 30-50% is considered good, so please use it as a reference for buying stocks.
Three recommended stocks with a payout ratio of 30%.
1 ITOCHU Corporation
Itochu, the best-performing trading company, has a dividend payout ratio in the 30% range.
Many trading companies have high dividend payout ratios, but on the other hand, Itochu has a well-balanced approach to investing its funds.
The company has also increased its dividend for six consecutive fiscal years, making it a stock with high potential for the future.
For more information about ITOCHU, please refer to the following article.
2 Samty Corporation
Samty is a general real estate company with a dividend payout ratio in the 30% range.
The company owns highly profitable real estate throughout Japan and is also recession-proof.
The company has raised its dividend for four consecutive years and is forecasting a fifth consecutive year, so you can expect a lot from the company.
For more details about Samty, please refer to the following article.
3 Yodogawa Steel Works
Yodogawa Steelworks, a steel manufacturer with sound finances, has a dividend payout ratio in the 30% range.
The company is one of the best in the industry in terms of components called colored steel sheets.
Although the company has experienced losses in the past, it has recently been paying out stable dividends.
For more information about Yodogawa Steelworks, please refer to the following article.
- The standard dividend payout ratio is 30~50%.
- A high payout ratio is not necessarily a good thing.
- Let’s judge the index comprehensively.
I have introduced 3 recommended stocks with a payout ratio in the 30% range!
We will continue to provide useful information for investment, so please stay tuned.
Thank you for reading to the end!