The board of Kyoto Financial Group,Inc. (TSE:5844) has announced that it will be paying its dividend of ¥35.00 on the 2nd of December, an increased payment from last year’s comparable dividend. Even though the dividend went up, the yield is still quite low at only 2.4%.
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Kyoto Financial GroupInc’s Earnings Will Easily Cover The Distributions
If it is predictable over a long period, even low dividend yields can be attractive.
Having distributed dividends for at least 10 years, Kyoto 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 Kyoto Financial GroupInc’s payout ratio of 54% is a good sign as this means that earnings decently cover dividends.
Over the next year, EPS is forecast to expand by 14.1%. If the dividend continues on this path, the future payout ratio could be 57% by next year, which we think can be pretty sustainable going forward.
TSE:5844 Historic Dividend September 7th 2025
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Kyoto Financial GroupInc 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 ¥15.00 in 2015, and the most recent fiscal year payment was ¥70.00. This implies that the company grew its distributions at a yearly rate of about 17% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock.
The Dividend Looks Likely To Grow
The company’s investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Kyoto Financial GroupInc has grown earnings per share at 12% per 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.
We Really Like Kyoto Financial GroupInc’s Dividend
Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. 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 3 Kyoto Financial GroupInc 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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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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