Mizuho Financial Group (TSE:8411) Will Pay A Dividend Of ¥50.00

The board of Mizuho Financial Group, Inc. (TSE:8411) has announced that it will pay a dividend on the 6th of June, with investors receiving ¥50.00 per share. The payment will take the dividend yield to 3.6%, which is in line with the average for the industry.

See our latest analysis for Mizuho Financial Group

Mizuho Financial Group's Earnings Will Easily Cover The Distributions

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

Having distributed dividends for at least 10 years, Mizuho Financial Group has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Mizuho Financial Group's payout ratio of 36% is a good sign as this means that earnings decently cover dividends.

Looking forward, earnings per share is forecast to rise by 19.4% over the next year. Assuming the dividend continues along recent trends, we think the future payout ratio could be 33% by next year, which is in a pretty sustainable range.

Mizuho Financial Group Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2014, the dividend has gone from ¥60.00 total annually to ¥100.00. This implies that the company grew its distributions at a yearly rate of about 5.2% over that duration. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.

Mizuho Financial Group Could Grow Its Dividend

The company's investors will be pleased to have been receiving dividend income for some time. Mizuho Financial Group has impressed us by growing EPS at 5.1% per year over the past five years. Mizuho Financial Group definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Mizuho Financial Group Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Mizuho Financial Group is a strong income stock thanks to its track record and growing earnings. Distributions are quite easily covered by earnings, which are also being converted to cash flows. 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. Earnings growth generally bodes well for the future value of company dividend payments. See if the 10 Mizuho Financial Group analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Mizuho Financial Group 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.