Mizuho Securities has announced an anticipated increase in its dividends for the fiscal year ending March 2025, revealing the news on March 19, 2025, at 16:00. This announcement will potentially mark the company’s third consecutive term of dividend increases, with a projected dividend yield of 5.33%.
In detail, Mizuho Securities has disclosed that its interim dividend (finalized in September) stands at 15 yen and the term-end dividend (settled in March) will also be 15 yen. This results in an overall annual dividend payout of 30 yen per share, a notable increase of 6 yen from the previous fiscal term's 24 yen per share.
The decision to raise the dividend was influenced by considerations of the company's financial health, net assets, and period profits. Mizuho Securities aims for a payout ratio around 50% and maintains a minimum dividend of 20 yen per share during their ongoing medium-term management plan, which spans from the March 2023 term to the March 2025 term.
The announcement of the dividend increase led to an immediate reaction in the stock market. Mizuho Securities’ shares saw a substantial jump in after-hours trading, reaching a peak of 600 yen—a notable rise of 6.76% from the previous day’s close of 562 yen on March 19, 2025. This spike in share price has positioned Mizuho Securities to be a focus in the stock market following the holiday break.
For those keeping track of critical dates, the rights final date for the term-end dividend is March 27, 2025, and the rights determination date is March 28, 2025.
Nanto Bank, on the same day, also revealed a revised dividend forecast for the fiscal year ending March 2025 at 15:30. This prediction included an increase in dividends against both the previous fiscal year's performance and earlier forecasts, projecting its dividend yield to leap from 3.25% to 4.35%.
The anticipated breakdown for Nanto Bank shows the interim dividend set at 60 yen and the term-end dividend at 105 yen, cumulatively amounting to 165 yen per share. This reflects a substantial increase of 42 yen from prior estimates and a remarkable 51 yen increase from the previous fiscal year’s dividend of 114 yen per share.
Nanto Bank's revision aligns with its new shareholder return policy, increasing its target payout ratio from 30% to 40%. This shift was also a key factor in deciding the dividend hike.
Similar to Mizuho, Nanto Bank experienced a surge in its stock price, climbing to 4,050 yen in after-hours trading, representing a gain of 7% from the day's close of 3,785 yen, thus drawing attention as markets open post-holiday.
Shareholders should also note that the rights final date for the term-end dividend is the same as Mizuho’s: March 27, 2025, with the rights determination date on March 28, 2025.
Over the past several terms, both financial institutions have demonstrated the ability to consistently raise dividends. Nanto Bank's dividend has nearly doubled over the past four years, with projections suggesting its annual payout has increased from 80 yen per share to a forecasted 165 yen.
Additionally, Nanto Bank offers incentives for shareholders based on their shareholding duration and quantity, providing QUO cards or products from Nara Prefecture to long-term investors. This strategy does more than reward commitment; it aims to enhance shareholder engagement and satisfaction.
Both Mizuho Securities and Nanto Bank's financial forecasts indicate solid growth. Mizuho's share price has surged 1.9 times since March 2022, increasing from 290 yen to 562 yen by March 19, 2025. Meanwhile, Nanto Bank has also seen a relatively similar growth trajectory in its share prices, reinforcing investor confidence.
As these banks navigate through the continually shifting financial landscape, the emphasis on shareholder returns through consistent dividend increases reflects a commitment to both investors and the broader market.
With the end of March approaching, investors will be keenly observing these payouts and their respective implications on market trends.
