OSG (TYO:6136) said its board approved changes to its shareholder return policy, raising its dividend targets to improve capital efficiency, according to a Thursday filing on the Tokyo Stock Exchange.

Under the revised policy, the toolmaker will aim for a consolidated dividend payout ratio of 45% or a dividend on equity ratio of 3.5%, whichever is higher, compared with the previous target of a payout ratio of at least 35%.

The company will continue to factor in capital adequacy, earnings trends, share price levels and growth investment opportunities when considering treasury stock purchases, it said.

The new policy will apply from the fiscal year ending November 30, 2026.