Sumitomo Mitsui Financial Group's (TSE:8316) Dividend Will Be ¥135.00

Sumitomo Mitsui Financial Group, Inc. (TSE:8316) has announced that it will pay a dividend of ¥135.00 per share on the 1st of July. This takes the annual payment to 3.0% of the current stock price, which is about average for the industry.

View our latest analysis for Sumitomo Mitsui Financial Group

Sumitomo Mitsui Financial Group's Earnings Will Easily Cover The Distributions

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue.

Sumitomo Mitsui Financial Group has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but Sumitomo Mitsui Financial Group's payout ratio of 37% is a good sign as this means that earnings decently cover dividends.

The next year is set to see EPS grow by 24.8%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 32% by next year, which is in a pretty sustainable range.

Sumitomo Mitsui Financial Group Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was ¥110.00 in 2014, and the most recent fiscal year payment was ¥270.00. This means that it has been growing its distributions at 9.4% per annum over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

We Could See Sumitomo Mitsui Financial Group's Dividend Growing

The company's investors will be pleased to have been receiving dividend income for some time. Sumitomo Mitsui Financial Group has impressed us by growing EPS at 5.9% per year over the past five years. Sumitomo Mitsui Financial Group definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like Sumitomo Mitsui Financial Group's Dividend

Overall, a dividend increase is always good, and we think that Sumitomo Mitsui Financial Group is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income 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. Earnings growth generally bodes well for the future value of company dividend payments. See if the 10 Sumitomo Mitsui Financial Group analysts we track are forecasting continued growth with our free report on 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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