Top Japanese (NIKKEI) Dividend Stocks

Top Japanese (NIKKEI) Dividend Stocks

UPDATED Sep 27, 2023

What are the best Japanese (NIKKEI) Dividend Stocks?

According to our Simply Wall St analysis these are the best Japanese dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.

Our criteria to find Top Dividend Companies

High Yield

  • Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
  • Yields vary between markets, so we focus on the top dividend payers in each market.

What do we look for?

  • Is the yield in the top 25% of the market's dividend payers.

Consistent Dividends

  • Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
  • If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.

What do we look for?

  • Has the dividend been stable over the last 10 years.
  • Has the dividend grown over the last 10 years.

Dividend Cover

  • Ideally the company doesn't pay out all of its earnings, neglecting future growth.
  • If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.

What do we look for?

  • Are dividends covered by earnings.
  • Are dividends forecast to be covered by earnings in the future.

Healthy Balance Sheet

  • Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.

What do we look for?

  • Does the company have a manageable level of debt.
  • Is the company able to cover its interest repayments.

123 companies meet this criteria in the Japanese market

Daito Trust Construction Co.,Ltd. designs, constructs, and rents apartments and condominiums in Japan.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: 1878's dividend (3.35%) is in the top 25% of dividend payers in the JP market (3.28%)

  • Notable Dividend

  • Future Dividend Coverage

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Rewards

  • Trading at 33.5% below our estimate of its fair value

  • Earnings are forecast to grow 8.53% per year

Risks

No risks detected for 1878 from our risks checks.

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Heiwa Corporation develops, manufactures, and sells pachinko and pachislot machines in Japan.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: 6412's dividend (3.64%) is in the top 25% of dividend payers in the JP market (3.28%)

  • Notable Dividend

  • Future Dividend Coverage

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Rewards

  • Trading at 42.5% below our estimate of its fair value

  • Earnings are forecast to grow 10.09% per year

  • Earnings grew by 312.5% over the past year

Risks

No risks detected for 6412 from our risks checks.

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Sun Frontier Fudousan Co., Ltd. provides real estate revitalization services to building owners, asset holders, and wealthy individuals in Japan.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: 8934's dividend (3.46%) is in the top 25% of dividend payers in the JP market (3.28%)

  • Notable Dividend

  • Future Dividend Coverage

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Rewards

  • Trading at 40.1% below our estimate of its fair value

  • Earnings are forecast to grow 19.2% per year

  • Earnings grew by 37.7% over the past year

Risks

  • Shareholders have been diluted in the past year

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JAC Recruitment Co., Ltd. operates as a recruitment consultancy in Japan.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: 2124's dividend (3.34%) is in the top 25% of dividend payers in the JP market (3.28%)

  • Notable Dividend

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 52.9% below our estimate of its fair value

  • Earnings are forecast to grow 19.77% per year

  • Earnings grew by 20.5% over the past year

Risks

No risks detected for 2124 from our risks checks.

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WDB Holdings Co., Ltd. operates human resource, CRO, and platform and other business in Japan.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: 2475's dividend (3.53%) is in the top 25% of dividend payers in the JP market (3.28%)

  • Notable Dividend

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 52.2% below our estimate of its fair value

  • Earnings are forecast to grow 10.17% per year

Risks

No risks detected for 2475 from our risks checks.

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SEIKOH GIKEN Co., Ltd. engages in design, manufacture, and sale of optical components and lens, and radio over fiber products in Japan and internationally.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: 6834's dividend (3.5%) is in the top 25% of dividend payers in the JP market (3.28%)

  • Notable Dividend

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Trading at 36.1% below our estimate of its fair value

  • Earnings are forecast to grow 10.09% per year

Risks

  • Does not have a meaningful market cap (¥13B)

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Suzuki Co.,Ltd. manufactures and sells connectors for car electronics parts in Japan.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: 6785's dividend (3.8%) is in the top 25% of dividend payers in the JP market (3.28%)

  • Notable Dividend

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Price-To-Earnings ratio (8.9x) is below the JP market (14.5x)

  • Earnings are forecast to grow 9.12% per year

Risks

  • Volatile share price over the past 3 months

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Tsugami Corporation, together with its subsidiaries, manufactures and sells precision machine tools in Japan.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • High Dividend: 6101's dividend (4.08%) is in the top 25% of dividend payers in the JP market (3.28%)

  • Notable Dividend

  • Future Dividend Coverage

See Full Stock Report

Rewards

  • Price-To-Earnings ratio (9x) is below the JP market (14.5x)

  • Earnings are forecast to grow 16.33% per year

Risks

  • Profit margins (7%) are lower than last year (10%)

View all Risks and Rewards
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