Top Japanese (NIKKEI) Materials Dividend Stocks

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

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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 (¥12B)

  • Profit margins (0.8%) are lower than last year (4.1%)

  • Large one-off items impacting financial results

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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

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Rewards

  • Earnings are forecast to grow 43.39% per year

Risks

  • Does not have a meaningful market cap (¥9B)

  • Profit margins (2.6%) are lower than last year (4.7%)

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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

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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%)

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Adeka Corporation engages in chemicals, food products, and life science businesses.

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

See Full Stock Report

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%)

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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

See Full Stock Report

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.

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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

See Full Stock Report

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

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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

See Full Stock Report

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.

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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

See Full Stock Report

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.

View all Risks and Rewards
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