TOKYO -- Fujitsu will consider raising its dividend for fiscal 2017 from the prospective rate of 11 yen per share after assessing growth in the company's commercial information technology services.
"It is possible that we will do a positive reassessment of the expected dividend as performance for the current fiscal year comes into focus," said Hidehiro Tsukano, chief financial officer, implying a dividend hike. He did not reveal a payout ratio target. The Japanese IT company's fiscal 2016 dividend was 9 yen per share.
Fujitsu's consolidated net profit, using international accounting standards, is expected to grow 64% from the previous year to 145 billion yen ($1.31 billion), renewing the record for the first time in three years. But the company's currently expected payout ratio stands at below 20%.
Fujitsu's earnings power has grown, increasing its cash flow. Consolidated cash flow for the current year likely will total 120 billion yen, up from 104.8 billion yen the previous fiscal year.