3 Japanese Dividend Stocks Offering Up To 6.1% Yield
As Japan’s stock market exhibits mixed signals with the Nikkei 225 seeing modest gains amidst a strengthening yen and supportive service sector data, investors might find stability in dividend-paying stocks. These stocks can offer attractive yields and potential for income, particularly appealing in a landscape where economic indicators are varied.
Top 10 Dividend Stocks In Japan
Name | Dividend Yield | Dividend Rating |
Yamato Kogyo (TSE:5444) | 3.73% | ★★★★★★ |
Mitsubishi Shokuhin (TSE:7451) | 3.62% | ★★★★★★ |
Globeride (TSE:7990) | 3.69% | ★★★★★★ |
HITO-Communications HoldingsInc (TSE:4433) | 3.58% | ★★★★★★ |
Ryoyu Systems (TSE:4685) | 3.52% | ★★★★★★ |
KurimotoLtd (TSE:5602) | 5.02% | ★★★★★★ |
FALCO HOLDINGS (TSE:4671) | 3.48% | ★★★★★★ |
Mitsubishi Research Institute (TSE:3636) | 3.44% | ★★★★★★ |
GakkyushaLtd (TSE:9769) | 4.19% | ★★★★★★ |
Innotech (TSE:9880) | 4.15% | ★★★★★★ |
Click here to see the full list of 399 stocks from our Top Dividend Stocks screener.
Let's dive into some prime choices out of from the screener.
ANEST IWATA
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: ANEST IWATA Corporation specializes in air energy and coating solutions, operating across Japan, Europe, the Americas, China, and other international markets with a market capitalization of approximately ¥58.04 billion.
Operations: ANEST IWATA Corporation generates revenue primarily from its operations in Japan (¥26.33 billion), China (¥12.41 billion), Europe (¥9.38 billion), and the Americas (¥7.26 billion).
Dividend Yield: 3.4%
ANEST IWATA has increased its dividend to ¥27.00 per share, up from ¥22.00 last year, demonstrating a commitment to returning value to shareholders despite a history of volatile dividends over the past decade. The company maintains a sustainable payout with earnings and cash flow coverage ratios at 40.1% and 43%, respectively. However, its dividend yield of 3.41% slightly trails the top quartile of Japanese dividend stocks at 3.44%. Recent strategic changes suggest potential expansion and operational adjustments ahead.
Get an in-depth perspective on ANEST IWATA's performance by reading our dividend report here.
Our valuation report unveils the possibility ANEST IWATA's shares may be trading at a discount.
Sankyo
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Sankyo Co., Ltd., primarily engaged in the manufacturing and selling of game machines and ball bearing supply systems in Japan, has a market capitalization of approximately ¥354.47 billion.
Operations: Sankyo Co., Ltd. generates its revenues primarily through the production and sales of game machines and ball bearing supply systems within Japan.
Dividend Yield: 6.2%
Sankyo Co., Ltd. is trading at a significant discount to its estimated fair value and offers a competitive dividend yield of 6.19%, ranking in the top 25% of Japanese dividend payers. Despite a history of unstable dividends, recent increases and coverage by both earnings (39.3%) and cash flows (49.2%) suggest improvements in sustainability. However, earnings are expected to decline annually by 8.5% over the next three years, posing potential challenges ahead for maintaining dividend growth.
Ku HoldingsLtd
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Ku Holdings Ltd. (TSE: 9856) is a company based in Japan that specializes in the import and sale of new and used cars, with a market capitalization of approximately ¥41.10 billion.
Operations: Ku Holdings Ltd. generates its revenue primarily through the import and sales of both new and pre-owned vehicles in Japan.
Dividend Yield: 4.2%
Ku Holdings Ltd. maintains a low payout ratio of 43%, ensuring dividends are sufficiently covered by earnings and cash flows, with a cash payout ratio at 36.8%. Despite this financial prudence, the dividend track record over the past decade has been inconsistent, marked by volatility. Nevertheless, Ku Holdings offers a dividend yield of 4.19%, placing it among the top quartile in Japan's market where the average is 3.44%. The company's price-to-earnings ratio stands at an attractive 6.7x compared to the Japanese market average of 14.1x.
Key Takeaways
Take a closer look at our Top Dividend Stocks list of 399 companies by clicking here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TSE:6381 TSE:6417TSE:9856 and
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