Shizuoka Financial GroupInc's (TSE:5831) Dividend Will Be ¥25.00

Shizuoka Financial Group,Inc. (TSE:5831) will pay a dividend of ¥25.00 on the 17th of June. Based on this payment, the dividend yield for the company will be 3.6%, which is fairly typical for the industry.

See our latest analysis for Shizuoka Financial GroupInc

Shizuoka Financial GroupInc's Dividend Forecasted To Be Well Covered By Earnings

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important.

Having distributed dividends for at least 10 years, Shizuoka Financial GroupInc has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Shizuoka Financial GroupInc's payout ratio of 38% is a good sign as this means that earnings decently cover dividends.

Over the next year, EPS is forecast to expand by 7.4%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 40% by next year, which is in a pretty sustainable range.

Shizuoka Financial GroupInc Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The dividend has gone from an annual total of ¥16.00 in 2015 to the most recent total annual payment of ¥50.00. This implies that the company grew its distributions at a yearly rate of about 12% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Shizuoka Financial GroupInc has been growing its earnings per share at 12% a year over the past five years. Shizuoka Financial GroupInc definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Shizuoka Financial GroupInc Looks Like A Great Dividend Stock

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. 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.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 7 analysts we track are forecasting for Shizuoka Financial GroupInc for free with public analyst estimates for the company. If you are a dividend investor, you might also want to look at our curated list of high yield 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.