Trading firm Sumitomo said it will buy back its stock and adopt a progressive dividend policy, bringing it in line with the other four major peers in an effort to boost shareholder returns.
Sumitomo will allocate ¥700 billion ($4.5 billion) of returns over the next three years, with a goal of total shareholder return ratio of 40%, the company said Thursday in a filing. It’s also aiming for at least 12% return on equity for the fiscal year ending March 2027, and plans to buy back up to ¥50 billion worth of shares.
The stock closed 4.4% higher, extending a record high, after briefly jumping as much as 7.6%. Trading volume more than quintupled its three-month daily average.