TOKYO, May 01 (Pulse News Wire) – Tsuruya CO.,LTD. (5386.T) rejected a shareholder proposal seeking higher dividend payouts at its board meeting held on May 01, 2026.
The proposal, submitted by three unnamed shareholders, suggested distributing an additional amount per share compared to the previously announced dividend rate. The company's board opposed the proposal, citing concerns over maintaining sufficient liquidity for operational needs and future investments. TSURUYA plans to distribute annual dividends based on the current fiscal year’s net income, which stands at ¥373 million, inclusive of extraordinary gains from asset sales totaling ¥233 million. The proposed dividend payout ratio is set at 28.8%, resulting in an annual dividend of ¥14 per share, including a special dividend of ¥6 per share.
In addition, the company highlighted its strategy to enhance long-term corporate value through prudent capital allocation, focusing on internal reserves for stable revenue generation and strategic investments. The funds generated from recent asset disposals, such as the sale of unused land at the Aikubi factory site, amounted to ¥1.322 billion. These proceeds were allocated towards soil remediation costs, payments to small contractors, equipment purchases, share buybacks, and debt repayment. TSURUYA emphasized that maintaining adequate cash reserves is crucial for sustaining operations and supporting growth initiatives, particularly given the seasonal fluctuations and unpredictable maintenance requirements inherent in its clay tile manufacturing business.
The company also noted that its current dividend policy aligns with industry best practices, aiming for stability rather than volatility in payouts.
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