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Three Japanese Dividend Stocks Offering Up To 3.8% Yield

Amid a backdrop of modest declines in Japanese stock markets and heightened uncertainty around the Bank of Japan's monetary policy directions, investors may find reassurance and potential stability in dividend-yielding stocks. These stocks can offer a semblance of predictability in returns, which could be particularly appealing given the current economic uncertainties and market fluctuations.

Top 10 Dividend Stocks In Japan

Name

Dividend Yield

Dividend Rating

Yamato Kogyo (TSE:5444)

3.87%

★★★★★★

Business Brain Showa-Ota (TSE:9658)

3.59%

★★★★★★

Globeride (TSE:7990)

3.72%

★★★★★★

Open House Group (TSE:3288)

3.48%

★★★★★★

FALCO HOLDINGS (TSE:4671)

6.77%

★★★★★★

KurimotoLtd (TSE:5602)

5.11%

★★★★★★

GakkyushaLtd (TSE:9769)

4.18%

★★★★★★

Seibu Electric & Machinery (TSE:6144)

4.36%

★★★★★★

Nichimo (TSE:8091)

4.16%

★★★★★★

Innotech (TSE:9880)

4.04%

★★★★★★

Click here to see the full list of 387 stocks from our Top Dividend Stocks screener.

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We're going to check out a few of the best picks from our screener tool.

HITO-Communications HoldingsInc

Simply Wall St Dividend Rating: ★★★★★☆

Overview: HITO-Communications HoldingsInc operates in outsourcing, temporary staffing, e-commerce support, and wholesale sectors both domestically and internationally, with a market capitalization of ¥16.93 billion.

Operations: HITO-Communications HoldingsInc generates revenue through activities in outsourcing, temporary staffing, e-commerce support, and wholesale sectors across global markets.

Dividend Yield: 3.4%

HITO-Communications HoldingsInc. maintains a conservative payout ratio of 30.9%, ensuring dividends are well-covered by earnings and cash flows, with a cash payout ratio at 26.4%. Dividends have shown stability and reliability over the past decade, though recent profit margins dipped to 1.5% from last year's 4.3%. The dividend yield stands at 3.44%, slightly below the top quartile in Japan's market by just 0.01%. Despite this, earnings are expected to grow by an annual rate of 23.79%.

TSE:4433 Dividend History as at Jun 2024
TSE:4433 Dividend History as at Jun 2024

SMK

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: SMK Corporation, with a market cap of ¥16.16 billion, specializes in manufacturing and selling parts for electro-communication devices and electronic equipment across Japan, Asia, North America, and Europe.

Operations: SMK Corporation generates ¥20.59 billion from its Connection Systems segment and ¥25.54 billion from its Sensing, Communication & Interface division.

Dividend Yield: 3.8%

SMK Corporation's dividend profile presents challenges with a recent cut from JPY 100 to JPY 50 per share, reflecting underlying financial struggles including projected operating losses through March 2025. Despite these issues, the dividend yield remains competitive at 3.85%, above the market average of 3.45%. The dividends are reasonably supported by cash flows with a cash payout ratio of 49.5%, but overall earnings do not cover these payments, indicating potential sustainability concerns if financial performance doesn't improve.

TSE:6798 Dividend History as at Jun 2024
TSE:6798 Dividend History as at Jun 2024

Traders HoldingsLtd

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Traders Holdings Co., Ltd. operates in Japan, focusing on foreign exchange and securities trading, with a market capitalization of approximately ¥20.17 billion.

Operations: Traders Holdings Co., Ltd. generates revenue primarily from its Financial Instruments Trading Business, which brought in ¥9.87 billion, and its System Development and System Consulting Business, contributing ¥2.61 billion.

Dividend Yield: 3.8%

Traders Holdings Ltd. has demonstrated a growing dividend, increasing from JPY 8.00 to JPY 12.00 per share for the second quarter-end of FY2025, despite a recent cut in annual dividend from JPY 17.00 to JPY 16.00 per share as of FY2024 end. With earnings growth of 20.8% annually over the past five years and forecasts suggesting operating revenue reaching JPY 11.80 billion by March 2025, the dividends appear sustainable with low payout ratios: earnings at 20.4% and cash flows at 16.4%.

TSE:8704 Dividend History as at Jun 2024
TSE:8704 Dividend History as at Jun 2024

Taking Advantage

  • Unlock our comprehensive list of 387 Top Dividend Stocks by clicking here.

  • Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.

  • Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

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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:4433 TSE:8704 and

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com