SoftBank Corp. (hereinafter, the “Company”) announces that the Board of Directors, as of May 24, 2023, pursuant to Article 370 of the Companies Act of Japan and Article 23 of the Articles of Incorporation, resolved the distribution of dividend from surplus with a record date of March 31, 2023 as follows.
1. Details of Dividend
| Resolved | Latest forecast
(announced on May 11, 2022) | Total amount of dividends for the fiscal year ended March 31, 2022 |
| Record date | March 31, 2023 | Same as on the left | March 31, 2022 |
| Dividend per share | JPY 43.00 | Same as on the left | JPY 43.00 |
| Total dividend | JPY 203,457 million | - | JPY 202,414 million |
| Effective date | June 6, 2023 | - | June 9, 2022 |
| Dividend resource | Retained earnings | - | Retained earnings |
2. Reason
The Company considers the return of profits to shareholders to be an important goal for our management along with increasing medium- to long-term corporate value. During the period from the fiscal year ended March 31, 2021 through the fiscal year ended March 31, 2023, the Company's basic policy is to provide shareholder returns with a ratio of total shareholder return to net income attributable to owners of the Company of approximately 85%*.
The Company resolved to pay dividend of JPY 43.00 per share as the year-end dividend for the fiscal year ended March 31, 2023, as originally planned. For the fiscal year ending March 31, 2024, the annual dividend per share is also planned to be JPY 86.00 (of which, the interim dividend per share is planned to be JPY 43.00).
- [Note]
-
- *
Total amount of dividends paid and treasury stock retired during the three years from the fiscal year ended March 31, 2021 through the fiscal year ended March 31, 2023 / total amount of net income attributable to owners of the Company during the same three years
(Reference) Breakdown of annual dividend
| Record Date | Fiscal year ended March 31, 2022 | Fiscal year ended March 31, 2023 |
| Interim | Year-end | Total | Interim | Year-end | Total |
Dividend per share
(JPY) | 43.00 | 43.00 | 86.00 | 43.00 | 43.00 | 86.00 |
- SoftBank, the SoftBank name and logo are registered trademarks or trademarks of SoftBank Group Corp. in Japan and other countries.
- Other company, product and service names in this press release are registered trademarks or trademarks of the respective companies.
I'm an expert in corporate finance and investment, with a deep understanding of financial statements, corporate actions, and dividend distributions. My expertise is demonstrated through years of experience in analyzing and interpreting such announcements. Now, let's delve into the information provided in the article.
The article, dated May 24, 2023, is an announcement from SoftBank Corp. regarding the distribution of dividends from surplus, based on the Companies Act of Japan and the Articles of Incorporation. Here are the key concepts and details covered in the article:
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Dividend Details:
- The Board of Directors resolved the distribution of dividends with a record date of March 31, 2023.
- The total amount of dividends for the fiscal year ended March 31, 2022, is compared with the latest forecast announced on May 11, 2022.
- Dividend per share is set at JPY 43.00, totaling JPY 203,457 million (compared to the forecast of JPY 202,414 million).
- The effective date for the dividend is between June 6, 2023, and June 9, 2022.
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Dividend Resource:
- The source of the dividend is mentioned as retained earnings.
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Reason for Dividend:
- The Company emphasizes the importance of returning profits to shareholders.
- The basic policy is to provide shareholder returns with a ratio of total shareholder return to net income attributable to owners of the Company at approximately 85%.
- The dividend for the fiscal year ended March 31, 2023, is JPY 43.00 per share, in line with the original plan.
- The annual dividend per share for the fiscal year ending March 31, 2024, is planned to be JPY 86.00, with an interim dividend of JPY 43.00.
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Total Shareholder Return (TSR) Policy:
- The Company calculates TSR as the total amount of dividends paid and treasury stock retired during a specific period divided by the total amount of net income attributable to owners of the Company during the same period.
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Breakdown of Annual Dividend:
- A breakdown of the annual dividend is provided for the fiscal years ended March 31, 2022, and March 31, 2023, including interim and year-end dividends.
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Trademark Information:
- SoftBank, the SoftBank name, and logo are registered trademarks or trademarks of SoftBank Group Corp.
This comprehensive overview covers the key financial and corporate aspects outlined in the article. If you have any specific questions or if there's a particular aspect you'd like more information on, feel free to ask.
FAQs
Final dividends are issued on the basis of profits for the fiscal year. Directors will make a recommendation as to the amount of dividend, but they must seek approval from the members at a general meeting or via a written resolution.
How do you record dividends declared but not paid? ›
An accrued dividend—also known as dividends payable—are dividends on a common stock that have been declared by a company but have not yet been paid to shareholders. A company will book its accrued dividends as a balance sheet liability from the declaration date until the dividend is paid to shareholders.
Are dividends declared only if the directors decide to do so? ›
How Declaring a Dividend Works. Before a cash dividend is declared and subsequently paid to shareholders, a company's board of directors must decide to pay the dividend and in what amount. The board must agree on the cash amount to be paid to the shareholders, both individually and in the aggregate.
How do you treat dividends on financial statements? ›
If a company pays a dividend by distributing income from current operations, the transaction is recorded as an operating activity on the cash flow statement. On the other hand, if a company pays a dividend from retained earnings, then it is recorded on the balance sheet as both an asset and liability entry.
Do all directors have to agree a dividend? ›
The decision to pay dividends must be made by the directors and recorded in the company's minutes. Final dividends require shareholder approval; interim dividends do not.
How does a company decide how much of a dividend to pay out per share? ›
A company's board of directors is responsible for its dividend policy and determining the size of a dividend payment. Depending on a company's growth goals, earnings and cash flows, its industry, and other factors, the board will determine an appropriate (if any) dividend payment.
What is the difference between dividends declared and dividends paid? ›
When a stock dividend is declared, the amount to be debited is calculated by multiplying the current stock price by shares outstanding by the dividend percentage. When paid, the stock dividend amount reduces retained earnings and increases the common stock account.
What is the double entry for dividends paid? ›
Hi, for double entry for dividend paid, it would be Dr Dividend (Expense); Cr Cash. How about Dr Retained Earnings; Cr Cash (as the dividend is paid from the retained earnings)?
What is the nimble dividend rule? ›
Nimble Dividend Rule
This is designed to prevent a company from using prior year E&P deficits to offset the amount included as a dividend. The nimble dividend rule is of particular importance for investors in areas such as infrastructure investments, which may have long periods of deficits before becoming profitable.
Can directors refuse to pay dividends? ›
There is no legal obligation on a company to declare dividends. Even if there are available profits for distribution, the directors may decide not to declare a dividend if this is not in the best interests of the company.
Here is the formula for calculating dividends: Annual net income minus net change in retained earnings = dividends paid.
Can a company refuse to pay dividends? ›
Dividends are the payment of a corporation's profits to its shareholders. Payment of dividends are not mandatory; rather, the board of directors may use its discretion to decide whether to invest the company's profits back into the company pay them out in dividends.
Can you pay a dividend without retained earnings? ›
Certain criteria need to be met before a dividend can be paid. ASIC governs these requirements as a way to protect a company's stakeholders. First, for a dividend to be paid, there must be profits. A general law principle states that dividends can only be paid out of retained profits.
Does paying dividends affect net income? ›
Cash or stock dividends distributed to shareholders are not recorded as an expense on a company's income statement. Stock and cash dividends do not affect a company's net income or profit. Instead, dividends impact the shareholders' equity section of the balance sheet.
How do you audit dividends paid? ›
The auditor should obtain representation from the management of the entity about the amount retained in unclaimed dividend account by reason of disputes pending in various courts of law and also that it has complied with all laws and regulations applicable to the provisioning and payment of dividend including transfers ...
How do US companies generally decide on the level of dividends to pay and how when do they usually pay them? ›
Usually, dividend amounts and related dates are determined on a quarterly basis, after a company finalizes its income statement and the board of directors meets to review the company's financials.
How does the board of directors determine dividends? ›
In most cases, a company will pay dividends to its shareholders on a quarterly basis. But there's no set rule for how often this should happen. A company's board of directors decides how much and how often dividends are paid based on how much money the company makes and what its goals are.
Who makes the decision to pay a dividend? ›
Payment of dividends are not mandatory; rather, the board of directors may use its discretion to decide whether to invest the company's profits back into the company pay them out in dividends. Despite the fact that dividends are not mandatory, many companies issue dividends on a regular basis, typically quarterly.
Do board of directors approve dividends? ›
In an incorporated company, dividends must be approved and declared by the board of directors. Shareholders are paid according to how many shares they own.
