NTT - Solid dividend stock on the TYO?

It has a great track record in dishing out dividends. And judging by its stability, it could be one of the stocks that Japanese investors might consider in curating their first stock portfolio.

Here are some important points I picked up from their latest Q1'23 results.

Operating revenue increase YoY while profit tagged along as well. Operating profit is marginally lower YoY due to higher operating expenses.

Higher operating expenses are contributed by higher personnel expenses, expenses with regard to goods and services, and also a slight uptick in depreciation and amortization.

Like all telecommunication companies, NTT is operating in a predictable cash-generating business. And since it is already in a matured and saturated industry, it can unlock shareholder value by doing share buybacks.

Share buybacks have happened almost every year, and have helped to improve earnings per share YoY.

Not only earnings per share increased, but dividends per share as well. Dividends per share have grown from JPY 0.5 to JPY 5.0 per share over the last 20 years. NTT has also been prudent in the payout ratio as it has never breached beyond 50%.

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