The board of Kyoto Financial Group,Inc. (TSE:5844) has announced that it will pay a dividend of ¥40.00 per share on the 3rd of June. Although the dividend is now higher, the yield is only 2.4%, which is below the industry average.
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Kyoto Financial GroupInc’s Payment Expected To Have Solid Earnings Coverage
The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock.
Kyoto Financial GroupInc has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Taking data from its last earnings report, calculating for the company’s payout ratio shows 41%, which means that Kyoto Financial GroupInc would be able to pay its last dividend without pressure on the balance sheet.
The next year is set to see EPS grow by 9.6%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 56% by next year, which is in a pretty sustainable range.
TSE:5844 Historic Dividend December 17th 2025
See our latest analysis for Kyoto Financial GroupInc
Kyoto Financial GroupInc Has A Solid Track Record
Even over a long history of paying dividends, the company’s distributions have been remarkably stable. The annual payment during the last 10 years was ¥15.00 in 2015, and the most recent fiscal year payment was ¥80.00. This works out to be a compound annual growth rate (CAGR) of approximately 18% a year over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven’t experienced any notable falls during this period.
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 Kyoto Financial GroupInc has been growing its earnings per share at 19% a 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.
Kyoto Financial GroupInc Looks Like A Great Dividend Stock
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Distributions are quite easily covered by earnings, which are also being converted to cash flows. 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. 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 Kyoto Financial GroupInc for free with public 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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