Dividends

The Pigeon Group regards the return of income to shareholders as an important management priority. Our policy is to actively return income to shareholders through appropriation of retained earnings and other means, while reinforcing our financial position based on considerations of medium-term changes in business conditions and the Group’s business strategies. In addition to strengthening our financial position, we effectively use retained earnings in a number of ways to fortify our operational base and improve future Group earnings. These include investing in new businesses for further growth and research and development, as well as investing in production facilities to strengthen our corporate brand, raise production capacity, reduce costs, and enhance product quality.

With respect to targets of shareholder return, under the Seventh Medium-Term Business Plan (for the period between the fiscal year ended December 2020 and the fiscal year ending December 2022) announced in February 2020, we aim to increase dividends every fiscal year compared to previous year. We are also targeting a consolidated total shareholder return of 55%. To this end, we have sought to further strengthen and upgrade measures for returning profits to all shareholders.

The distribution of dividends in the period under review reflects the above policies and targets. The Group distributed an interim dividend of ¥36 per share (ordinary dividend of ¥36). For the year-end dividend, the Group forecasts a dividend of ¥36 per share (ordinary dividend of ¥36). As a result, the annual dividend for the term under review will total ¥72 per share (ordinary dividend of ¥72), a per share increase by ¥2 from the previous year.

The annual dividend for the next term will total ¥74 per share, a per share increase of ¥2 from the term under review based on the targets of shareholder return (increase dividends every fiscal year compared to previous year and a consolidated total shareholder return of 55%) set out under the Seventh Medium-Term Business Plan.

Yen
 Jan. 2018Jan. 2019Dec. 2019Dec. 2020Dec. 2021(E)
Annual Dividend per Share 66 68 70 72 74 
(Interim Dividend per Share) 31 34 35 36  37
Consolidated Dividend Payout Ratio(%) 54.5 57.2 72.7 81.0 79.8 


(Note) The Company carried out a 2-for-1 split of common stock, effective August 1, 2013, and a 3-for-1 split of common stock, effective May 1, 2015. Figures have been calculated assuming that those stock splits were conducted at the beginning of the year ended January 31, 2014.