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Top Japanese (NIKKEI) Dividend Stocks
UPDATED Jun 28, 2022
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.
94 companies meet this criteria in the Japanese market
Nippon Carbide Industries Co., Inc. engages in the electronic and functional products, and films and sheetings business.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: 4064's dividend (4.73%) is in the top 25% of dividend payers in the JP market (3.71%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 67.8% below our estimate of its fair value
Earnings are forecast to grow 23.35% per year
Risks
Does not have a meaningful market cap (Â¥13B)
Shareholders have been diluted in the past year
Large one-off items impacting financial results
Nippon Carbon Co., Ltd. engages in the manufacture and sale of carbon products in Japan.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: 5302's dividend (4.74%) is in the top 25% of dividend payers in the JP market (3.71%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 59.6% below our estimate of its fair value
Earnings are forecast to grow 22.87% per year
Earnings grew by 110.8% over the past year
Risks
No risks detected for 5302 from our risks checks.
en-japan inc. provides online recruitment, recruiting and staffing, employee training, and HR consulting and aptitude test services in Japan and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: 4849's dividend (4.05%) is in the top 25% of dividend payers in the JP market (3.71%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 70.5% below our estimate of its fair value
Earnings are forecast to grow 20.78% per year
Earnings grew by 89.3% over the past year
Risks
Highly volatile share price over the past 3 months
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: 4745's dividend (4.16%) is in the top 25% of dividend payers in the JP market (3.71%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 31.9% below our estimate of its fair value
Earnings are forecast to grow 10.56% per year
Earnings grew by 523.7% over the past year
Risks
No risks detected for 4745 from our risks checks.
JAC Recruitment Co., Ltd. operates as a recruitment consultancy in Japan and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: 2124's dividend (4.42%) is in the top 25% of dividend payers in the JP market (3.71%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 33.5% below our estimate of its fair value
Earnings are forecast to grow 16.62% per year
Earnings grew by 146.8% over the past year
Risks
No risks detected for 2124 from our risks checks.
Asia Pile Holdings Corporation, through its subsidiaries, operates as a general foundation construction company in Asia.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: 5288's dividend (4.32%) is in the top 25% of dividend payers in the JP market (3.71%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 63.2% below our estimate of its fair value
Earnings are forecast to grow 18.03% per year
Risks
Profit margins (1.6%) are lower than last year (2.8%)
OSG Corporation Co., Ltd. develops and sells water products in Japan and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
High Dividend: 6757's dividend (4.57%) is in the top 25% of dividend payers in the JP market (3.71%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 51.6% below our estimate of its fair value
Earnings are forecast to grow 10.58% per year
Risks
Does not have a meaningful market cap (Â¥5B)
Sawai Group Holdings Co., Ltd., together with subsidiaries, engages in the research, development, manufacturing, and marketing of generic pharmaceutical products primarily in Japan and the United States.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: 4887's dividend (3.14%) is low compared to the top 25% of dividend payers in the JP market (3.71%).
Future Dividend Coverage
Rewards
Trading at 71.2% below our estimate of its fair value
Earnings are forecast to grow 25% per year
Risks
Profit margins (5.6%) are lower than last year (10.5%)
Large one-off items impacting financial results