Unveiling the Dividend History, Yield, Growth, and Sustainability of Resona Holdings Inc
Resona Holdings Inc (RSNHF, Financial) recently announced a dividend of $11 per share, payable on an unspecified date, with the ex-dividend date set for 2023-09-28. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using GuruFocus data, let's delve into Resona Holdings Inc's dividend performance and evaluate its sustainability.
A Brief Overview of Resona Holdings Inc
Resona Holdings is one of the top six Japanese banking groups by assets. Despite being categorized as a "city" bank in Japan for historical reasons, it's effectively a super-regional bank operating mainly in the Kansai region (54% of its branches) and the Tokyo metropolitan area (43% of branches). The bank primarily focuses on retail and small and medium-size enterprises, rather than lending to large corporates. Its overseas operations are limited, which allows it to operate in compliance with domestic capital standards alone.
Resona Holdings Inc's Dividend History
Resona Holdings Inc has maintained a consistent dividend payment record since 2013, with dividends currently distributed bi-annually. The chart below shows the annual Dividends Per Share for tracking historical trends.
Resona Holdings Inc's Dividend Yield and Growth
As of today, Resona Holdings Inc currently has a 12-month trailing dividend yield of 2.61% and a 12-month forward dividend yield of 2.81%. This suggests an expectation of increased dividend payments over the next 12 months.
Extended to a five-year horizon, this rate increased to 0.70% per year. And over the past decade, Resona Holdings Inc's annual dividends per share growth rate stands at 4.90%. Based on Resona Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Resona Holdings Inc stock as of today is approximately 2.70%.
Assessing Dividend Sustainability: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Resona Holdings Inc's dividend payout ratio is 0.31.
Resona Holdings Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Resona Holdings Inc's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Resona Holdings Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Resona Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Resona Holdings Inc's revenue has increased by approximately -1.10% per year on average, a rate that underperforms than approximately 84.82% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Resona Holdings Inc's earnings increased by approximately 0.60% per year on average, a rate that underperforms than approximately 75.62% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -10.10%, which underperforms than approximately 92.92% of global competitors.
Conclusion
Resona Holdings Inc's consistent dividend payment record, fair profitability rank, and robust growth metrics make it an intriguing choice for investors seeking dividend income. However, the company's underperformance in revenue and EPS growth compared to global competitors warrants cautious optimism. As always, investors are advised to conduct thorough research and consider various factors before making investment decisions.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
