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Hammock Corp. Dividends: A New Era

Hammock Corporation, headquartered in Shinjuku, Tokyo, is making an important announcement regarding its dividend policy and forecast. The upcoming Board of Directors meeting, scheduled for August 14, 2026, will highlight significant changes aimed at enhancing shareholder value.

Revised Dividend Policy

Hammock acknowledges the importance of dividends as a means of returning profits to its shareholders. The company has reaffirmed its commitment to maintaining a balance between business expansion and safeguarding necessary internal reserves. In light of the advancing AI era, Hammock plans to leverage its strengths to enhance its business reach.

Going forward, Hammock intends to actively invest in growth while ensuring shareholder returns. The strategy involves capitalizing on the company’s existing IT asset management solutions, specifically the AssetView series, to meet the escalating demand for automated and efficient AI-driven security measures. Furthermore, Hammock aims to develop innovative solutions utilizing unique customer data accumulated through its products, such as Hot Profile, which collects business card information and customer interaction histories.

Strategic Investment and Financial Resilience

Hammock’s business model relies on a stable revenue structure supported by recurring income and solid cash flow generation, which allows it to maintain a robust financial position. The company has determined that it can simultaneously pursue growth investments while enhancing shareholder returns.

Additionally, Hammock identifies the improvement of capital efficiency as a key management goal. By balancing revenue growth through careful investment and enhanced shareholder rewards, Hammock aspires to boost its Return on Equity (ROE) and outperform capital costs. This dual strategy seeks to improve long-term corporate and shareholder value.

Key Changes in Dividend Policy

Target Payout Ratio: Hammock aims for a long-term annual payout ratio of 50%.
Introduction of DOE: A new bottom-line benchmark, Dividend on Equity (DOE), is set at a minimum of 5%.
* Increased Distribution Frequency: The company will conduct both mid-year and year-end dividends, making it a total of two distributions annually.

These modifications signify Hammock's commitment to ensuring consistent and stable returns for shareholders. Amid changing market conditions, the focus remains on balancing growth investments with effective profit sharing.

Adjusted Dividend Forecast

Alongside policy changes, Hammock is adjusting its dividend forecasts for the fiscal year ending March 2027. Reflecting the new dividend strategy, the company has revised its mid-year dividend to 20 yen per share and confirmed the year-end payout at 45 yen per share. This adjustment results in an increase of 20 yen in the overall annual dividend, bringing it to 65 yen.

About Hammock Corporation

Founded on April 1, 1994, Hammock is a corporate software manufacturer that aims to provide unique experiences through the power of technology. The company addresses client challenges and needs by delivering high-quality, fast, and reasonably priced IT solutions that were not previously available. With a focus on innovation and customer support, Hammock stands at the forefront of software development for various business applications, helping clients thrive in an increasingly digital environment. For more information on Hammock, visit Hammock's Website.