Back to top

Image: Bigstock

Mitsubishi UFJ (MUFG) Repurchases 40.2M Shares Under 400M Plan

Read MoreHide Full Article

Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) declared progress on its share buyback activities. It announced that from Nov 15 through Nov 30, 2023, it repurchased 40,214,100 shares of its common stock for ¥51,012,638,435.

The repurchases were carried out through the company’s ¥400-billion share repurchase program announced on Nov 14, 2023. The plan authorizes the company to buy back up to 400,000,000 shares, indicating a 3.31% of the total shares outstanding (excluding treasury stock).

The company seeks to continuously improve shareholders’ return and increase capital efficiency. Since May 2017, it has completed several share-repurchase programs. This is stoking investors’ confidence in the stock. In February 2023, MUFG repurchased shares worth ¥79.7 billion.

This apart, MUFG increased its dividend forecast for fiscal 2023 to ¥41 per share from ¥32. Further, it targets a dividend payout ratio of 40% by the end of fiscal 2023. Thus, by leveraging the capital surplus, MUFG aims to attract investors by a progressive increase in dividends and executing flexible share repurchases.

As of Sep 30, 2023, MUFG had cash and due from banks of ¥108.63 trillion while its borrowed money totaled ¥24.97 trillion. Given a sound balance sheet position, Mitsubishi UFJ’s capital distribution activities seem sustainable.  

So far this year, shares of MUFG have gained 27.7% on the NYSE compared with 13.6% growth of the industry it belongs to.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Currently, MUFG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Share Buyback Plans of Other Finance Companies

Raymond James Financial, Inc. (RJF - Free Report) announced enhanced capital distribution plans, including a dividend hike and a new share buyback program. RJF's board of directors has declared a quarterly cash dividend of 45 cents per share, representing an increase of 7.1% from the prior payout. The new dividend will be paid out on Jan 16, 2024, to shareholders on record as of Jan 2, 2024.

Based on the increased rate, the annual dividend came to $1.80 per share, resulting in an annualized yield of 1.71%, considering Raymond James' closing price of $105.15 as of Nov 30.

Provident Financial Holdings, Inc. (PROV - Free Report) announced a share repurchase plan. Under the plan, its board of directors authorized to buy back up to 350,353 shares or nearly 5% of its outstanding shares.

This new repurchase plan replaced the previous program, which was announced in April 2022, where PROV was set to buy back approximately 364,259 shares. In April 2023, it announced an extension of the program for a year or until completed, whichever is earlier.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in