Shareholder return strategy: No. 1<3562> changed its shareholder return policy along with the publication of the new mid-term management plan "Evolution 2027" and showed the direction of significantly strengthening shareholder return. So far, we have aimed for stable dividends (30% dividend payout ratio as a guide), but in the future, we plan to implement stable and continuous shareholder dividends based on a policy of aiming for a 30% dividend payout ratio, regardless of changes in annual performance. A notable feature is that we have set a minimum dividend of the previous year's annual dividend per share and will continue to increase dividends, which is a significant enhancement of shareholder return and can also be evaluated as a expression of confidence in profit growth. Moreover, we have a policy of "flexibly implementing under financial discipline" for acquiring our own shares, showing a more proactive stance.* *Considering the gap between our own perception of the stock price and the market evaluation, ROE, capital efficiency, and CF level, we have a policy of implementing it flexibly. Dividends for the fiscal year ending February 2024 will increase by 1 yen from the previous year, as expected at the beginning of the period, to 33 yen per share (mid-term dividend of 16.5 yen and year-end dividend of 16.5 yen). We also acquired 340,000 shares of our own stock (with a purchase price of 397 million yen). Despite the anticipated decline in profits for the fiscal year ending February 2025, we are expected to follow the policy of increasing dividends every period and issue a dividend of 1 yen per share (a commemorative dividend for the 35th anniversary of our founding), with an expected increase of 2 yen from the previous year to 35 yen per share (mid-term dividend of 17.5 yen and year-end dividend of 17.5 yen).
DAWN (2303) positions profit distribution to shareholders as an important management issue and has a basic policy of progressive dividends while securing internal reserves necessary for future business expansion and strengthening management capabilities. Under this policy, it has continued to increase dividends consecutively behind the backdrop of favorable performance since the FY May 2016. The dividend for FY May 2024 achieved the ninth consecutive increase with an annual dividend of 20.0 yen, which is an increase of 4.0 yen compared to the previous period, and a dividend payout ratio of 16.0%. We expect the dividend for FY May 2025 to increase by 2.0 yen to 22.0 yen with a dividend payout ratio of 17.1%. We expect the pace of dividend increases to accelerate, as there is room for an increase in dividend payout ratio in the future, together with stable profit growth through expanded performance.
(Written by FISCO Guest Analyst, Hideo Kakuta)
