TOKYO (XFN-ASIA) - Japanese companies listed on the local stock exchanges are expected to distribute about half their net profits to shareholders in the current year ending March 31, a poll conducted by the Nikkei business newspaper showed.
The survey, based on financial data from 3,795 firms, showed that dividend payments in the current fiscal year will rise 11 pct to 6.37 trln yen and stock buybacks linked to earnings will climb 35 pct to 6.9 trln yen -- both record levels.
As a result, a total of 13.3 trln yen in profits is expected to be distributed to shareholders, meaning that the surveyed firms plan to transfer 52 pct of net profits to shareholders, a 9-point increase from the previous year, the Nikkei said.
By increasing payouts to shareholders, the firms can restrain growth in retained earnings, thereby keeping down the increase in shareholders' equity, which in turn improves such performance measures as return on equity, the report said.
(1 usd = 116.71 yen)
yasuhiko.seki@xfn.com
ys/mas