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Top Japanese (NIKKEI) Tech Dividend Stocks
UPDATED Jun 25, 2022
What are the best Japanese (NIKKEI) Tech Dividend Stocks?
According to our Simply Wall St analysis these are the best Japanese Tech 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.
7 companies meet this criteria in the Japanese market
Roland DG Corporation manufactures and sells computer peripheral equipment in Japan, rest of Asia, the United States, Europe, and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
High Dividend: 6789's dividend (3.95%) is in the top 25% of dividend payers in the JP market (3.74%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Trading at 58.5% below our estimate of its fair value
Earnings are forecast to grow 10.31% per year
Became profitable this year
Risks
Volatile share price over the past 3 months
Sigmakoki Co., Ltd., together with its subsidiaries, develops, produces, and sells optical equipment products, automatic application products, and optical elements/thin films.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: 7713's dividend (2.75%) is low compared to the top 25% of dividend payers in the JP market (3.74%).
Future Dividend Coverage
Rewards
Trading at 41.7% below our estimate of its fair value
Earnings are forecast to grow 9.93% per year
Earnings grew by 63.7% over the past year
Risks
Does not have a meaningful market cap (Â¥10B)
Elematec Corporation supplies electronic parts, materials, and modules for manufacturers of electronic products in Japan and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
High Dividend: 2715's dividend (4.89%) is in the top 25% of dividend payers in the JP market (3.74%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Price-To-Earnings ratio (9.4x) is below the JP market (12.4x)
Earnings are forecast to grow 11.08% per year
Earnings grew by 46.6% over the past year
Risks
No risks detected for 2715 from our risks checks.
Osaki Electric Co., Ltd. develops, manufactures, sells, and installs smart meters in Japan, rest of Asia, the Oceania, Europe, and internationally.
Dividend Criteria
Stable Dividend
Growing Dividend
High Dividend: 6644's dividend (3.99%) is in the top 25% of dividend payers in the JP market (3.74%)
Notable Dividend
Future Dividend Coverage
Earnings Coverage
Rewards
Earnings are forecast to grow 56.34% per year
Risks
No risks detected for 6644 from our risks checks.
Shibaura Electronics Co.,Ltd. manufactures and sells thermistor elements, and products utilizing thermistor elements in Japan and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: 6957's dividend (2.97%) is low compared to the top 25% of dividend payers in the JP market (3.74%).
Future Dividend Coverage
Stable Dividend
Rewards
Trading at 55.1% below our estimate of its fair value
Earnings are forecast to grow 9.8% per year
Earnings grew by 63.6% over the past year
Risks
Volatile share price over the past 3 months
Ibiden Co.,Ltd. provides electronic and ceramics products in Japan, Asia, North America, Europe, and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Notable Dividend
High Dividend: 4062's dividend (1.03%) is low compared to the top 25% of dividend payers in the JP market (3.74%).
Future Dividend Coverage
Rewards
Trading at 80.3% below our estimate of its fair value
Earnings are forecast to grow 15.14% per year
Earnings grew by 60.4% over the past year
Risks
Large one-off items impacting financial results
Volatile share price over the past 3 months
Tokyo Electron Device Limited, a technology trading company, engages in the electronic components and computer networks businesses worldwide.
Dividend Criteria
Earnings Coverage
Growing Dividend
High Dividend: 2760's dividend (4.64%) is in the top 25% of dividend payers in the JP market (3.74%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Price-To-Earnings ratio (10.1x) is below the JP market (12.4x)
Earnings are forecast to grow 11.96% per year
Earnings grew by 61.8% over the past year
Risks
Debt is not well covered by operating cash flow