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Operations: Araya Industrial Co., Ltd. generates revenue from its steel pipe related segment at ¥42.77 billion, bicycle related activities at ¥306 million, and real estate rentals and other services at ¥611 million.

Dividend Yield: 6.1%

Araya Industrial's dividend payments have been volatile over the past decade, yet they have shown growth. The dividends are well-covered by earnings and cash flows, with payout ratios of 61.7% and 53%, respectively. Despite a lower profit margin this year (3.2% from 4.8%), the stock trades at a significant discount to its estimated fair value, offering an attractive yield of 6.11%, placing it in the top quartile among Japanese dividend payers.

• Unlock comprehensive insights into our analysis of Araya Industrial stock in this dividend report.

• The analysis detailed in our Araya Industrial valuation report hints at an inflated share price compared to its estimated value.

Fuyo General Lease

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Fuyo General Lease Co., Ltd. operates in the leasing and installment sales sector both in Japan and internationally, with a market cap of ¥338.72 billion.

Operations: Fuyo General Lease Co., Ltd. generates revenue primarily through its Lease and Installment segment, which accounts for ¥596.80 billion, complemented by its Financing segment contributing ¥43.41 billion.

Dividend Yield: 3.9%

Fuyo General Lease's dividends have been stable and growing over the past decade, with a payout ratio of 30.1%, indicating coverage by earnings despite lacking free cash flow coverage. The dividend yield of 3.94% ranks in the top 25% among Japanese dividend payers, though concerns arise from insufficient cash flow to cover debt obligations. Trading at a substantial discount to its estimated fair value enhances its appeal relative to peers and industry standards.

• Click here to discover the nuances of Fuyo General Lease with our detailed analytical dividend report.

• Our valuation report here indicates Fuyo General Lease may be undervalued.

Summing It All Up

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Want To Explore Some Alternatives?

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• Find companies with promising cash flow potential yet trading below their fair value.

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.

Companies discussed in this article include SEHK:179 TSE:7305 and TSE:8424.

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