To be frank, what initially attracted me to the stock of Japan Foods Holding Ltd. recently, is its dividend yield. As mentioned in my earlier post, Japan Foods’ dividend yield is 4.06% in FY 2017, and it is among the highest in the consumer stocks family (if not the highest). See below.
The company paid out SGD 0.0205 in dividend in FY 2017.
The recent share price of Japan Foods is $0.505. So assuming that the dividend in FY 2018 remains the same as what was distributed out in FY 2017, the dividend yield would be 4.06%. Not too shabby.
The key question then is: Is its Dividend Sustainable?As highlighted in its website, under the company’s dividend policy, the Board intends to recommend and distribute not less than 40% of the Group’s audited consolidated
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