Stock Analysis

Exploring Top Dividend Stocks In Japan May 2024

TSE:6413
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As of May 2024, the Japanese market has shown resilience amidst global economic fluctuations, with the Nikkei 225 Index experiencing a slight decline. This performance comes in a week where broader global markets have faced mixed results, influenced by varied economic data and policy speculations. In this context, exploring dividend stocks in Japan could offer investors potential stability and yield opportunities, particularly attractive in an environment where careful selection aligns with current market dynamics.

Top 10 Dividend Stocks In Japan

NameDividend YieldDividend Rating
Yamato Kogyo (TSE:5444)3.68%★★★★★★
Mitsubishi Shokuhin (TSE:7451)3.56%★★★★★★
Globeride (TSE:7990)4.02%★★★★★★
Business Brain Showa-Ota (TSE:9658)3.59%★★★★★★
Nihon Parkerizing (TSE:4095)3.41%★★★★★★
HITO-Communications HoldingsInc (TSE:4433)3.52%★★★★★★
Ryoyu Systems (TSE:4685)3.44%★★★★★★
FALCO HOLDINGS (TSE:4671)3.48%★★★★★★
Mitsubishi Research Institute (TSE:3636)3.41%★★★★★★
GakkyushaLtd (TSE:9769)4.19%★★★★★★

Click here to see the full list of 373 stocks from our Top Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

Sakai Heavy Industries (TSE:6358)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Sakai Heavy Industries, Ltd. operates in the manufacturing and sales of construction equipment and industrial machinery, serving both domestic and international markets, with a market capitalization of ¥24.23 billion.

Operations: Sakai Heavy Industries, Ltd. primarily generates its revenue from the manufacture and sale of construction equipment and industrial machinery across various global markets.

Dividend Yield: 4.7%

Sakai Heavy Industries offers a dividend yield of 4.74%, ranking in the top 25% in the Japanese market, yet its dividend history has been marked by volatility over the past decade. Despite this, dividends are reasonably covered by earnings with a payout ratio of 36.1% and cash flows with a cash payout ratio of 54%. Recently, Sakai announced an increased year-end dividend of JPY 195.00 per share for fiscal year 2024 but projected a decrease to JPY 130.00 for fiscal year 2025, reflecting potential instability in future payouts.

TSE:6358 Dividend History as at May 2024
TSE:6358 Dividend History as at May 2024

Riso Kagaku (TSE:6413)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Riso Kagaku Corporation, with a market cap of ¥103.31 billion, engages in the manufacturing of printing equipment and operates in real estate and other sectors both in Japan and globally.

Operations: Riso Kagaku Corporation generates ¥72.87 billion from its printing equipment segment and ¥1.09 billion from real estate activities.

Dividend Yield: 3.2%

Riso Kagaku has experienced fluctuating dividend payments, with a recent decrease to ¥100.00 per share from the previous year's ¥120.00, reflecting instability in its dividend policy. Despite these fluctuations, dividends are supported by both earnings and cash flows with payout ratios of 68.8% and 59.2%, respectively. Additionally, the company recently announced a share repurchase program for up to ¥500 million to enhance shareholder value, valid until June 21, 2024, indicating a proactive approach to capital management amidst changing market conditions.

TSE:6413 Dividend History as at May 2024
TSE:6413 Dividend History as at May 2024

transcosmos (TSE:9715)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Transcosmos Inc. specializes in business outsourcing services both in Japan and globally, with a market capitalization of approximately ¥123.85 billion.

Operations: Transcosmos Inc. generates its revenue primarily from business outsourcing services across both domestic and international markets.

Dividend Yield: 3.5%

Transcosmos offers a dividend yield of ¥81.0, placing it in the top 25% of Japanese dividend payers. Despite trading at 61.2% below estimated fair value, its dividends are supported by a cash payout ratio of 33.2% and an earnings payout ratio of 31.7%. However, its dividend track record over the past decade has been unstable and volatile, with recent opposition to shareholder proposals for treasury share cancellation potentially impacting future capital policy flexibility.

TSE:9715 Dividend History as at May 2024
TSE:9715 Dividend History as at May 2024

Summing It All Up

  • Investigate our full lineup of 373 Top Dividend Stocks right here.
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Curious About Other Options?

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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