Shizuoka Financial GroupInc's (TSE:5831) Dividend Will Be ¥39.00

Shizuoka Financial Group,Inc. (TSE:5831) has announced that it will pay a dividend of ¥39.00 per share on the 23rd of June. This makes the dividend yield about the same as the industry average at 3.2%.

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

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

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 47% is a good sign as this means that earnings decently cover dividends.

The next year is set to see EPS grow by 9.9%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 49% by next year, which is in a pretty sustainable range.

See our latest analysis for Shizuoka Financial GroupInc

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 ¥78.00. This means that it has been growing its distributions at 17% per annum over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

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. We are encouraged to see that Shizuoka Financial GroupInc has grown earnings per share at 18% per year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.

We Really Like Shizuoka Financial GroupInc's Dividend

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 in all, this checks a lot of the boxes we look for when choosing an income 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 4 analysts we track are forecasting for Shizuoka Financial GroupInc for free with public analyst estimates for the company. Is Shizuoka Financial GroupInc 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.