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Bridgestone (TSE:5108) Will Pay A Dividend Of ¥115.00

Simply Wall St · 1d ago

The board of Bridgestone Corporation (TSE:5108) has announced that it will pay a dividend on the 26th of March, with investors receiving ¥115.00 per share. This takes the annual payment to 3.2% of the current stock price, which is about average for the industry.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Bridgestone's Payment Could Potentially Have Solid Earnings Coverage

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Based on the last payment, Bridgestone was quite comfortably earning enough to cover the dividend. This means that a large portion of its earnings are being retained to grow the business.

Over the next year, EPS is forecast to expand by 22.8%. If the dividend continues on this path, the payout ratio could be 54% by next year, which we think can be pretty sustainable going forward.

historic-dividend
TSE:5108 Historic Dividend December 25th 2025

View our latest analysis for Bridgestone

Dividend Volatility

The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from ¥120.00 total annually to ¥230.00. This implies that the company grew its distributions at a yearly rate of about 6.7% over that duration. It's good to see the dividend growing at a decent rate, but the dividend has been cut at least once in the past. Bridgestone might have put its house in order since then, but we remain cautious.

The Dividend Looks Likely To Grow

Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. It's encouraging to see that Bridgestone has been growing its earnings per share at 33% a year over the past five years. Bridgestone is clearly able to grow rapidly while still returning cash to shareholders, positioning it to become a strong dividend payer in the future.

Bridgestone Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Bridgestone is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've picked out 1 warning sign for Bridgestone that investors should know about before committing capital to this stock. Is Bridgestone not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.