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Fuji Pharma (TSE:4554) Has Announced A Dividend Of ¥21.00

Simply Wall St · 4d ago

Fuji Pharma Co., Ltd. (TSE:4554) has announced that it will pay a dividend of ¥21.00 per share on the 2nd of June. This takes the annual payment to 2.5% 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.

Fuji Pharma's Projected Earnings Seem Likely To Cover Future Distributions

We aren't too impressed by dividend yields unless they can be sustained over time. However, prior to this announcement, Fuji Pharma's dividend was comfortably covered by both cash flow and earnings. As a result, a large proportion of what it earned was being reinvested back into the business.

Over the next year, EPS is forecast to expand by 7.9%. If the dividend continues on this path, the payout ratio could be 38% by next year, which we think can be pretty sustainable going forward.

historic-dividend
TSE:4554 Historic Dividend January 8th 2026

See our latest analysis for Fuji Pharma

Fuji Pharma Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2016, the dividend has gone from ¥22.50 total annually to ¥47.00. This implies that the company grew its distributions at a yearly rate of about 7.6% over that duration. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. Fuji Pharma has impressed us by growing EPS at 13% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

We Really Like Fuji Pharma's Dividend

Overall, a dividend increase is always good, and we think that Fuji Pharma is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 2 warning signs for Fuji Pharma that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.