Hoya boosts shareholder returns with new dividend policy, buyback program

Hoya Corporation [TSE:7741] announced a shareholder return enhancement strategy involving a new dividend policy and a share buyback program. Hoya will implement a progressive dividend policy targeting a payout ratio of 40%, marking a shift from its previous non-quantitative approach to shareholder compensation. This has resulted in plans to increase the year-end dividend to JPY115 per share, up JPY50 from prior periods, which, alongside the JPY45 interim dividend, amounts to JPY160 for the full year, representing a 45% increase year-over-year. Concurrently, it will implement a program to repurchase existing shares to improve its capital structure, as current cash reserves exceed appropriate levels. Hoya’s assessment of the current business environment and portfolio performance led to the decision. The company will cancel 2,736,600 shares of common stock to be executed May 14, 2025. Looking back, Hoya reported consolidated revenue of JPY866.03 billion for fiscal year 2024, a 13.6% increase year-over-year. Hoya projects it will release its second quarter earnings forecast in July or August.