Japan's stock market has recently experienced significant volatility due to the strong yen and concerns about global economic growth. However, dovish comments from the Bank of Japan have helped stabilize the market, making it a good time to consider dividend stocks. In such a volatile environment, dividend stocks can offer a measure of stability and income. Here are three noteworthy Japanese dividend stocks that can provide both resilience and income in these uncertain times.
Top 10 Japanese Dividend Stocks
Name Dividend Yield Dividend Rating Takeuchi Manufacturing (TSE 6432) 4.73% ★★★★★★ Yamato Kogyo (TSE 5444) 4.31% ★★★★★★ Tsubakimoto Chain (TSE 6371) 4.03% ★★★★★ Aiphone Co., Ltd. (TSE 6718) 4.70% ★★★★★★ Globeride (TSE: 7990) 4.11% ★★★★★★ Kurimoto Industries Co., Ltd. (TSE: 5602) 5.10% ★★★★★★ Falco Holdings (TSE: 4671) 6.64% ★★ ★★★ Gakushusha Co., Ltd. (TSE: 9769) 4.41% ★★★★★★ EJ Holdings (TSE: 2153) 3.91% ★★★★★★ Innotek (TSE: 9880) 4.80% ★★★★★
To see the full list of 468 stocks from our Top Japan Dividend Stock Screener, click here.
Below you can see a selection of stocks filtered by our screen.
Simply Wall St Dividend Rating: ★★★★☆☆
About Global Link Management Co., Ltd. is a Japanese real estate solutions company with a market capitalization of JPY 15.99 billion.
Business Description: Global Link Management Co., Ltd. generates revenue through real estate solutions in Japan.
Dividend Yield: 5%
Global Link Management's dividend is well covered by both profits (payout ratio of 30.2%) and free cash flow (cash payout ratio of 9.5%). The company's dividend has remained stable despite high debt levels and share price fluctuations over the past three months, although it has only paid dividends for seven years. Its price-to-earnings ratio of 6x is below the JP market average of 12.6x, and its dividend yield is a top-tier 5.01%, making it a good value for income-seeking investors.
TSE:3486 Dividend History as of August 2024
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Septeni Holdings Co., Ltd. has a market capitalization of 84.63 billion yen and operates digital marketing and media platform businesses both domestically and overseas through its subsidiaries.
Business: Septeni Holdings Co., Ltd. generates revenue from its media platform business (4.96 billion yen) and digital marketing business (25.91 billion yen).
Dividend Yield: 7.7%
Septeni Holdings recently raised its 2024 year-end dividend forecast from ¥7.90 to ¥31.35 per share, reflecting a major policy shift. The dividend payout ratio is low at 19.7%, but the company's dividend is not fully covered by cash flow (cash dividend payout ratio: 176.2%). Historically, dividends over the past decade have been volatile and unstable. However, the dividend yield is one of the highest at 7.68%, and the company remains attractive to income-focused investors in the Japanese market.
TSE:4293 Dividend History as of August 2024
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: With a market capitalization of 12.19 trillion yen, Sumitomo Mitsui Financial Group offers a wide range of financial services, including banking, leasing, securities and consumer finance, in Japan and overseas.
Business: Sumitomo Mitsui Financial Group's revenue segments include Global Business (1.4 billion yen), Markets Business (545.4 million yen), Retail Business (1.32 billion yen), and Wholesale Business (866.4 million yen).
Dividend Yield: 3.5%
Sumitomo Mitsui Financial Group offers a stable 3.54% dividend, with a low payout ratio of 35.8%, meaning that the dividend is well covered by profits. The company has maintained stable dividends over the past decade, and profits have grown at an annualized rate of 22.5% over the past five years. A recent share buyback totaling JPY 100 billion highlights the company's commitment to enhancing shareholder returns, although it is worth noting that the company's dividend yield is slightly lower than that of the top quartile of payers in Japan.
TSE:8316 Dividend History as of August 2024
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.
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