In today’s briefing:
- More Effective for a Company to Show Background when It Raises Its Dividend Outlook
More Effective for a Company to Show Background when It Raises Its Dividend Outlook
- This fiscal year, total dividends paid haven’t increased compared to recovering total net profit. Consequently, the dividend payout ratio has fallen to the low 30% level, normal level for FY2020.
- The correlations of market capitalization to net profit and to dividends paid both declined from those of the past 10 years, indicating lack of confidence in profits in year ahead.
- Simply raising the dividend has limited effect on stock price increases. Given that the dividend payout ratio has declined, companies are required to explain how they are using their cash.
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