Trading firm Sumitomo said it will buy back its stock and adopt a progressive dividend policy, bringing it in line with the other four major peers in an effort to boost shareholder returns.

Sumitomo will allocate ¥700 billion ($4.5 billion) of returns over the next three years, with a goal of total shareholder return ratio of 40%, the company said Thursday in a filing. It’s also aiming for at least 12% return on equity for the fiscal year ending March 2027, and plans to buy back up to ¥50 billion worth of shares.

The stock closed 4.4% higher, extending a record high, after briefly jumping as much as 7.6%. Trading volume more than quintupled its three-month daily average.

“This looks like a good commitment to deliver strong returns over several years step-by-step rather than a big bang announcement with all the good news out at once,” said Mio Kato of LightStream Research. The new plan should give investors time to digest and understand the company’s potential, “and the outlook feels quite positive without a sense of massive over-promising.”

The announcement follows a rally in shares of Sumitomo and its peers, which have benefited from Warren Buffett’s Berkshire Hathaway taking a stake in the companies. Activist investor Elliott Management is also said to have built a “large” stake, adding pressure to boost shareholder returns.

President Shingo Ueno declined to comment on Elliott’s reported stake, but added that the company has a fair disclosure policy and is “in talks with a wide range of investors and shareholders.”

“We will continue to reflect those voices from stakeholders in our management,” Ueno said at a briefing in Tokyo. The company is still in talks with Berkshire Hathaway, but there aren’t business opportunities that have materialized between the two firms yet, he said.

Buffett said in his February letter to investors that the companies follow shareholder-friendly policies that are “superior” to those practiced in the U.S.