Panasonic Holdings (TSE:6752) Prepares for Ex-Dividend Soon

Panasonic Holdings Corporation, listed on the Tokyo Stock Exchange as TSE:6752, is getting ready for its ex-dividend date, an important event for those looking to earn dividends from the company. The ex-dividend date marks the point after which any new buyers of the stock won’t be eligible to receive the upcoming dividend. For Panasonic, this date is coming up in September 2023.

What is an Ex-Dividend Date?

The ex-dividend date is the last day to purchase shares if you want to qualify for the company’s next dividend. Anyone who buys Panasonic stock on or before this date will be entitled to receive the dividend. Panasonic plans to distribute ¥17.5 per share as part of its interim dividend, with the record date set for September 30, 2023.

How Has Panasonic’s Dividend Performed?

Over the past year, Panasonic has paid a total of ¥35.00 per share in dividends, yielding a 2.8% return based on its recent stock price of ¥1244.50. This means that for every ¥100 invested in Panasonic, investors can expect a return of ¥2.8 just from dividends. Investors like to look at the dividend yield because it shows how much cash flow they’re earning from their investment.

Panasonic is fairly conservative with its dividend payments, only distributing 26% of its profits to shareholders. This means that most of its earnings are kept in the business to help it grow. Although it used 59% of its free cash flow to pay dividends last year, this is considered manageable, leaving enough money for the company to continue expanding​(

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Simply Wall St).

Panasonic’s Dividend Growth

In the past ten years, Panasonic has increased its dividend payments by around 13% each year, making it attractive to long-term investors who like a steady increase in their income. However, the company’s profits (Earnings Per Share or EPS) have grown very slowly in recent years. While this hasn’t stopped Panasonic from increasing its dividends, it might limit future growth.

Future Outlook

Panasonic is involved in several industries, including home appliances, automotive batteries, and renewable energy solutions. Recently, the company has been focusing on developing electric vehicle (EV) batteries, especially through its partnership with Tesla. This could help Panasonic grow in the long term. It’s also worth noting that the company has exceeded analyst expectations for revenue in recent quarters, even though its profits have been slightly lower than expected​(

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Panasonic’s solid position in the growing EV market and its focus on renewable energy might help boost its future earnings. This, in turn, could support more dividend growth down the line.

Risks to Consider

Although Panasonic’s dividend payments are steady, there are some risks to keep in mind. The company’s slow EPS growth may limit future dividend increases. Also, the electronics and technology markets that Panasonic operates in are highly competitive and can change quickly. If Panasonic struggles to keep up with new technology or if external factors like economic conditions or supply chain disruptions affect it, future dividends could be impacted.

Moreover, with economic uncertainties such as inflation and rising interest rates, Panasonic may need to be cautious in balancing its growth strategies and shareholder returns​(

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Simply Wall St).

Conclusion

For investors focused on earning dividends, Panasonic offers a stable and reliable option with a current yield of around 2.8%. Its history of 13% annual dividend growth over the past decade is appealing, even though the company’s earnings have been relatively flat. While the ex-dividend date provides a chance for short-term investors to grab the dividend, long-term investors may also see potential if Panasonic continues to invest in high-growth areas like EV batteries​(

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Simply Wall St).

However, due to the slow growth in profits, investors should be cautious about expecting significant increases in dividends in the near future. That said, Panasonic’s investments in new technologies and global trends could provide the foundation for future growth. Before making any decisions, it’s always wise to consider your investment goals and any potential risks.