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Top Japanese (NIKKEI) Materials Dividend Stocks
UPDATED May 25, 2023
What are the best Japanese (NIKKEI) Materials Dividend Stocks?
According to our Simply Wall St analysis these are the best Japanese Materials 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.
9 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 (5.46%) is in the top 25% of dividend payers in the JP market (3.52%)
Notable Dividend
Future Dividend Coverage
Rewards
Trading at 42.3% below our estimate of its fair value
Earnings are forecast to grow 75.03% per year
Risks
Does not have a meaningful market cap (Â¥12B)
Profit margins (0.8%) are lower than last year (4.1%)
Large one-off items impacting financial results
GEOSTR Corporation engages in the manufacture and sale of precast concrete products for civil engineering in Japan.
Dividend Criteria
Earnings Coverage
Growing Dividend
High Dividend: 5282's dividend (4.64%) is in the top 25% of dividend payers in the JP market (3.52%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Earnings are forecast to grow 43.39% per year
Risks
Does not have a meaningful market cap (Â¥9B)
Profit margins (2.6%) are lower than last year (4.7%)
Sakai Chemical Industry Co., Ltd. provides various chemical products in Japan.
Dividend Criteria
Earnings Coverage
Growing Dividend
High Dividend: 4078's dividend (4.97%) is in the top 25% of dividend payers in the JP market (3.52%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Trading at 53.9% below our estimate of its fair value
Earnings are forecast to grow 34.81% per year
Risks
Profit margins (2.8%) are lower than last year (8.4%)
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: 4401's dividend (3.05%) is low compared to the top 25% of dividend payers in the JP market (3.52%).
Future Dividend Coverage
Rewards
Trading at 45.7% below our estimate of its fair value
Earnings are forecast to grow 12.51% per year
Risks
Profit margins (4.2%) are lower than last year (6.5%)
Nippon Shokubai Co., Ltd. manufactures and sells various chemical products in Japan.
Dividend Criteria
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: 4114's dividend (3.45%) is low compared to the top 25% of dividend payers in the JP market (3.52%).
Future Dividend Coverage
Stable Dividend
Rewards
Price-To-Earnings ratio (10.6x) is below the JP market (13.5x)
Earnings are forecast to grow 12.65% per year
Risks
No risks detected for 4114 from our risks checks.
Krosaki Harima Corporation, together with its subsidiaries, manufactures and sells refractory and ceramic products in Japan and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
High Dividend: 5352's dividend (5.46%) is in the top 25% of dividend payers in the JP market (3.52%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Trading at 71.2% below our estimate of its fair value
Earnings are forecast to grow 11.16% per year
Earnings grew by 50.9% over the past year
Risks
Debt is not well covered by operating cash flow
Volatile share price over the past 3 months
Soken Chemical & Engineering Co., Ltd. manufactures and sells acrylic pressure-sensitive adhesives, functional polymers, organic fine particles, and adhesive tapes in Japan, China, and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
High Dividend: 4972's dividend (4.84%) is in the top 25% of dividend payers in the JP market (3.52%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Price-To-Earnings ratio (10.1x) is below the JP market (13.5x)
Earnings are forecast to grow 32.27% per year
Risks
No risks detected for 4972 from our risks checks.
Sumitomo Bakelite Company Limited, together with its subsidiaries, engages in the research and development, manufacture and sale of semiconductor materials, plastic products, and life products in Japan and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: 4203's dividend (2.2%) is low compared to the top 25% of dividend payers in the JP market (3.52%).
Future Dividend Coverage
Stable Dividend
Rewards
Trading at 33.3% below our estimate of its fair value
Earnings are forecast to grow 9.55% per year
Earnings grew by 10.9% over the past year
Risks
No risks detected for 4203 from our risks checks.