MINEBEA MITSUMI Inc.’s (TSE:6479) investors are due to receive a payment of ¥25.00 per share on 28th of November. This makes the dividend yield about the same as the industry average at 2.0%.
MINEBEA MITSUMI’s Payment Could Potentially Have Solid Earnings Coverage
We aren’t too impressed by dividend yields unless they can be sustained over time. Before making this announcement, MINEBEA MITSUMI was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow.
Over the next year, EPS is forecast to expand by 12.9%. Assuming the dividend continues along recent trends, we think the payout ratio could be 35% by next year, which is in a pretty sustainable range.
TSE:6479 Historic Dividend August 18th 2025
See our latest analysis for MINEBEA MITSUMI
Dividend Volatility
Although the company has a long dividend history, it has been cut at least once in the last 10 years. The dividend has gone from an annual total of ¥12.00 in 2015 to the most recent total annual payment of ¥50.00. This works out to be a compound annual growth rate (CAGR) of approximately 15% a year over that time. Despite the rapid growth in the dividend over the past number of years, we have seen the payments go down the past as well, so that makes us cautious.
The Dividend’s Growth Prospects Are Limited
With a relatively unstable dividend, it’s even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Earnings have grown at around 4.4% a year for the past five years, which isn’t massive but still better than seeing them shrink. While EPS growth is quite low, MINEBEA MITSUMI has the option to increase the payout ratio to return more cash to shareholders.
In Summary
In summary, it’s great to see that the company can raise the dividend and keep it in a sustainable range. The payout ratio looks good, but unfortunately the company’s dividend track record isn’t stellar. Taking all of this into consideration, the dividend looks viable moving forward, but investors should be mindful that the company has pushed the boundaries of sustainability in the past and may do so again.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we’ve picked out 1 warning sign for MINEBEA MITSUMI that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.