Sumitomo Mitsui Trust Group (TSE:8309) Will Pay A Dividend Of ¥80.00

The board of Sumitomo Mitsui Trust Group, Inc. (TSE:8309) has announced that it will pay a dividend of ¥80.00 per share on the 3rd of December. This will take the dividend yield to an attractive 4.0%, providing a nice boost to shareholder returns.

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Sumitomo Mitsui Trust Group's Dividend Forecasted To Be Well Covered By Earnings

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable.

Sumitomo Mitsui Trust Group has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Sumitomo Mitsui Trust Group's last earnings report, the payout ratio is at a decent 40%, meaning that the company is able to pay out its dividend with a bit of room to spare.

The next year is set to see EPS grow by 6.9%. If the dividend continues along recent trends, we estimate the future payout ratio will be 45%, which is in the range that makes us comfortable with the sustainability of the dividend.

See our latest analysis for Sumitomo Mitsui Trust Group

Sumitomo Mitsui Trust Group Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The annual payment during the last 10 years was ¥55.00 in 2015, and the most recent fiscal year payment was ¥160.00. This means that it has been growing its distributions at 11% per annum over that time. 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

The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that Sumitomo Mitsui Trust Group has been growing its earnings per share at 11% a year over the past five years. Shareholders are getting plenty of the earnings returned to them, which combined with strong growth makes this quite appealing.

Sumitomo Mitsui Trust Group Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Sumitomo Mitsui Trust Group is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. 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. 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 Sumitomo Mitsui Trust Group for free with public analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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