Tokyo Gas Plans 40% Dividend Increase by Fiscal 2028 Amid Revised Shareholder Return Policy

Tokyo Gas Co., Ltd. has announced a revision of its shareholder return policy to prioritize capital efficiency and align dividend increases with long-term earnings growth, aiming for an ROE of 10% by 2030. The company plans to deliver over ¥200 billion in shareholder returns by fiscal year 2028, including a 40% increase in dividends per share from 100 yen to 140 yen by the end of fiscal 2028. This new policy shifts from a fixed total return ratio to a flexible allocation between growth investments and shareholder returns, including share buybacks, starting from the interim dividend for fiscal year 2025. Tokyo Gas also released its fiscal year 2026-2028 medium-term management plan, projecting up to ¥1.3 trillion in investments by fiscal 2028, with a portion directed overseas. The company recently raised its fiscal year 2026 dividend guidance to 50 yen per share for the second quarter and full-year forecasts, reflecting improved earnings. These moves follow pressure from shareholders, including activist investors, to enhance capital efficiency and focus on core business assets.