Kyoto Financial Group,Inc. (TSE:5844) has announced that it will pay a dividend of ¥40.00 per share on the 3rd of June. This takes the annual payment to 2.1% of the current stock price, which unfortunately is below what the industry is paying.
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Kyoto Financial GroupInc’s Earnings Will Easily Cover The Distributions
While yield is important, another factor to consider about a company’s dividend is whether the current payout levels are feasible.
Kyoto Financial GroupInc has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Kyoto Financial GroupInc’s payout ratio of 41% is a good sign as this means that earnings decently cover dividends.
Looking forward, earnings per share is forecast to rise by 9.6% over the next year. If the dividend continues along recent trends, we estimate the future payout ratio will be 56%, which is in the range that makes us comfortable with the sustainability of the dividend.
TSE:5844 Historic Dividend January 30th 2026
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Kyoto Financial GroupInc Has A Solid Track Record
The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2016, the dividend has gone from ¥15.00 total annually to ¥80.00. This means that it has been growing its distributions at 18% per annum over that time. It is good to see that there has been strong dividend growth, and that there haven’t been any cuts for a long time.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. Kyoto Financial GroupInc has seen EPS rising for the last five years, at 19% per annum. Since earnings per share is growing at an acceptable rate, and the payout policy is balanced, we think the company is positioning itself well to grow earnings and dividends in the future.
Kyoto Financial GroupInc Looks Like A Great Dividend Stock
Overall, a dividend increase is always good, and we think that Kyoto Financial GroupInc 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. 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. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. 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. 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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