Shizuoka Financial GroupInc (TSE:5831) Has Announced That It Will Be Increasing Its Dividend To ¥24.00

Shizuoka Financial Group,Inc. (TSE:5831) has announced that it will be increasing its dividend from last year's comparable payment on the 9th of December to ¥24.00. Based on this payment, the dividend yield for the company will be 3.3%, which is fairly typical for the industry.

View our latest analysis for Shizuoka Financial GroupInc

Shizuoka Financial GroupInc's Payment Expected To Have Solid Earnings Coverage

We aren't too impressed by dividend yields unless they can be sustained over time.

Shizuoka Financial GroupInc has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Shizuoka Financial GroupInc's last earnings report, the payout ratio is at a decent 37%, meaning that the company is able to pay out its dividend with a bit of room to spare.

Over the next year, EPS is forecast to expand by 8.5%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 42% by next year, which is in a pretty sustainable range.

Shizuoka Financial GroupInc Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2014, the annual payment back then was ¥15.00, compared to the most recent full-year payment of ¥48.00. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

Shizuoka Financial GroupInc Could Grow Its Dividend

Investors could be attracted to the stock based on the quality of its payment history. Shizuoka Financial GroupInc has seen EPS rising for the last five years, at 5.8% per annum. Shizuoka Financial GroupInc definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like Shizuoka Financial GroupInc's Dividend

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 1 warning sign for Shizuoka Financial GroupInc that investors should know about before committing capital to this stock. Is Shizuoka Financial GroupInc not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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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.

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