Resona Holdings' (TSE:8308) Dividend Will Be ¥14.50
Resona Holdings, Inc. (TSE:8308) has announced that it will pay a dividend of ¥14.50 per share on the 10th of June. Even though the dividend went up, the yield is still quite low at only 1.9%.
Resona Holdings' Earnings Will Easily Cover The Distributions
If it is predictable over a long period, even low dividend yields can be attractive.
Resona Holdings 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 Resona Holdings' payout ratio of 27% is a good sign as this means that earnings decently cover dividends.
Looking forward, earnings per share is forecast to rise by 7.5% over the next year. If the dividend continues on this path, the future payout ratio could be 26% by next year, which we think can be pretty sustainable going forward.
See our latest analysis for Resona Holdings
Resona Holdings Has A Solid Track Record
The company has an extended history of paying stable dividends. Since 2015, the dividend has gone from ¥17.00 total annually to ¥29.00. This works out to be a compound annual growth rate (CAGR) of approximately 5.5% a year over that time. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. Resona Holdings has impressed us by growing EPS at 13% per year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.
We Really Like Resona Holdings' Dividend
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. 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.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. 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 7 Resona Holdings 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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