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TOKYO — One in three listed companies in Japan are planning to increase dividend payouts this fiscal year, the largest number in three years, reflecting corporations’ bullish business outlooks.
Japan Inc.’s shift from hoarding cash to increasing shareholder returns for the year ending in March 2022 shows improvements in the economic outlook, as companies dust off the effects of the COVID-19 pandemic.
The Nikkei surveyed about 1,800 companies, including financial institutions. Comparisons were made taking stock splits and consolidation into account.
The number of companies expecting to increase their dividend payouts, including those that will resume dividends, rose 4 percentage points to 36%. Those seeking to cut dividends and those that had no dividend plans account for 10%, down 16 percentage points.
The percentage of companies raising dividends is the highest since the fiscal year ended March 2019, when it stood at 48%. Although the net incomes of listed companies decreased in that year, many companies still increased their dividends to meet shareholder requests.
Many Japanese companies are increasing their dividends this fiscal year thanks to an improving business environment. A growing number of countries, including the U.S. and some in Europe, are easing movement restrictions due to their rapid rollout of COVID-19 vaccines.
The 1,476 listed companies that have announced earnings forecasts are expected to post an average of a 30% rise in net profit from the previous year, marking a second consecutive year of double-digit rises.
Murata Manufacturing is expected to post another record profit, after last year’s, thanks to a rise in the sales of parts for automobiles and smartphones. The company expects to pay an annual dividend of 120 yen ($1.10) per share, up 5 yen from the previous year.
Tokyo Electron will increase its annual dividend by 280 yen to 1,061 yen per share, up for the second consecutive year. Its semiconductor manufacturing business is booming thanks to the expansion of fifth-generation wireless technologies.
