Sanwa: Raises DOE target to 15%, lifts FY2027 year-end dividend

Sanwa will raise its dividend-on-equity (DOE) benchmark from 10% to 15%, applying the new target to the year-end dividend for the fiscal year ending March 2027.

• Purpose: Increase shareholder returns.
• Capital goals: Optimize the capital structure and further improve capital efficiency.
• Management priorities: Continue investing for business growth while maintaining high capital efficiency and a sound financial base.

DOE is calculated by dividing total annual dividends by consolidated shareholders' equity. Sanwa uses it as a dividend measure that is less affected by share-price movements. The company has long aimed to provide steady, consistent dividends, and the higher benchmark signals a stronger emphasis on shareholder returns.

Sanwa raised its year-end dividend forecast for the fiscal year ending March 2027 by ¥23, to ¥96 from ¥73. The annual dividend forecast has also been revised to ¥169 from ¥146.

The revised forecast comprises an ordinary year-end dividend of ¥89 and a commemorative dividend of ¥7. For the full year, it comprises an ordinary dividend of ¥155 and a commemorative dividend of ¥14. Compared with the previous-year actual, the year-end dividend is up ¥28 and the annual dividend is up ¥39. The second-quarter dividend was ¥73, above the previous-year actual of ¥62.

Sanwa said the revisions reflect its change in dividend policy. The year-end increase does not come from adding a commemorative dividend: the ordinary dividend was raised to ¥89 from the previous forecast of ¥66.

The change raises Sanwa's return benchmark while retaining its existing approach of using DOE to guide stable dividends. Rather than tying the payout to the share price, the policy uses consolidated shareholders' equity as its reference.

A higher DOE target strengthens shareholder returns through dividends, while requiring Sanwa to balance payouts with business investment and its financial base. Sanwa plans to continue investing for growth. Investors will watch whether it can sustain dividends in line with the higher benchmark, depending on earnings and capital conditions.