Mizuho Financial Group (TSE:8411) Will Pay A Larger Dividend Than Last Year At ¥57.50

Mizuho Financial Group, Inc. (TSE:8411) has announced that it will be increasing its dividend from last year's comparable payment on the 6th of December to ¥57.50. This makes the dividend yield about the same as the industry average at 3.3%.

Check out our latest analysis for Mizuho Financial Group

Mizuho Financial Group'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.

Mizuho Financial Group has a long history of paying out dividends, with its current track record at a minimum of 10 years. Based on Mizuho Financial Group's last earnings report, the payout ratio is at a decent 39%, 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 7.3%. 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.

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 ¥115.00. This implies that the company grew its distributions at a yearly rate of about 6.7% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. It's encouraging to see that Mizuho Financial Group has been growing its earnings per share at 48% a year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.

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. 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.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 9 Mizuho Financial Group analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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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