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NTT Inc ( NPPXF ) Declares Next Dividend: What Value Investors Need to Know
NTT Inc ( NPPXF ) recently announced a total dividend of $0.02 per share with the ex-dividend date set for 2026-09-29, including $0.02 per share cash dividend. The payable date is not applicable based on available data. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into NTT Inc's dividend performance and assess its sustainability.
What Does NTT Inc Do?
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Nippon Telegraph and Telephone Corporation (NTT) is a Japanese telecommunications holding company and one of the world's largest providers of communications and IT services. Its operations span mobile communications through NTT Docomo, the country's leading wireless carrier; regional fixed-line and broadband services through NTT East and NTT West; and long-distance and international communications through NTT Communications. NTT Data is a major global IT services and systems integration business, while NTT Ltd. consolidates much of the group's overseas technology operations. The company serves consumers, enterprises, and government customers, generating revenue from mobile and fixed-line subscriptions, broadband access, data centers, cloud and managed services, systems integration, and related equipment sales. While its home market of Japan remains the largest source of revenue, NTT has expanded significantly internationally through NTT Data and other subsidiaries, deriving a growing share of sales from global IT and consulting operations.
A Glimpse at NTT Inc's Dividend History
NTT Inc has maintained a consistent dividend payment record since 2004. Dividends are currently distributed on a bi-annually basis. This long-standing commitment to returning capital to shareholders reflects the company's stable cash generation and disciplined capital allocation. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down NTT Inc's Dividend Yield and Growth
As of today, NTT Inc currently has a 12-month trailing dividend yield of 3.25% and a 12-month forward dividend yield of 3.35%. This suggests an expectation of increased dividend payments over the next 12 months. For value investors, the forward yield often provides a clearer picture of anticipated income, as it reflects management's guidance on future distributions rather than past payouts.
Over the past three years, NTT Inc's annual dividend growth rate was 3.40%. Extended to a five-year horizon, this rate increased to 4.70% per year. And over the past decade, NTT Inc's annual dividends per share growth rate stands at 9.40%. This multi-year track record demonstrates the company's ability to steadily raise its dividend, a hallmark of a shareholder-friendly business with durable earnings power.
Based on NTT Inc's dividend yield and five-year growth rate, the 5-year yield on cost of NTT Inc stock as of today is approximately 4.09%. Yield on cost measures the annual dividend return relative to an investor's original purchase price, offering a useful lens for long-term holders who have benefited from compounding payouts.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2026-06-30, NTT Inc's dividend payout ratio is 0.40, indicating that the company distributes roughly 40% of its earnings while retaining the remainder for reinvestment and balance sheet strength.
NTT Inc's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks NTT Inc's profitability 9 out of 10 as of 2026-06-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability and its capacity to sustain dividend payments through varying economic conditions.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. NTT Inc's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors. A high growth rank, combined with a moderate payout ratio, implies that NTT Inc can continue to fund both its dividend and its expansion initiatives without straining its financial resources.
Revenue is the lifeblood of any company, and NTT Inc's revenue per share , combined with the 3-year revenue growth rate , indicates a strong revenue model. NTT Inc's revenue has increased by approximately 5.10% per year on average, a rate that outperforms approximately 57.18% of global competitors. This steady top-line expansion supports the company's ability to generate the cash flows needed to fund future dividends.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, NTT Inc's earnings increased by approximately -1.80% per year on average, a rate that outperforms approximately 33.88% of global competitors. While the negative EPS growth warrants monitoring, it still compares favorably against many peers in the global telecommunications landscape.
Lastly, the company's 5-year EBITDA growth rate of 3.30% outperforms approximately 43.16% of global competitors. EBITDA growth reflects the company's operational profitability before accounting for financing and accounting decisions, and a positive trend here reinforces the underlying health of NTT Inc's core businesses.
Conclusion: Is NTT Inc's Dividend Built to Last?
NTT Inc ( NPPXF ) presents a compelling profile for income-focused value investors. The company's 3.25% trailing dividend yield, 3.35% forward yield, and consistent bi-annual payouts since 2004 underscore its commitment to shareholder returns. A payout ratio of 0.40, a profitability rank of 9 out of 10, and a growth rank of 9 out of 10 collectively suggest that the dividend is well supported by earnings and operational strength. While the negative 3-year EPS growth rate of -1.80% deserves attention, the company's positive net income over the past decade and steady revenue growth of 5.10% per year provide a solid foundation. Investors should continue to monitor NTT Inc's earnings trajectory and industry dynamics, particularly in mobile and IT services, to ensure the dividend remains sustainable over the long term.
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