Exploring Top Dividend Stocks In Japan May 2024

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

Name	Dividend Yield	Dividend 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.

• Delve into the full analysis dividend report here for a deeper understanding of Sakai Heavy Industries.
• In light of our recent valuation report, it seems possible that Sakai Heavy Industries is trading behind its estimated value.

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.

• Click here to discover the nuances of Riso Kagaku with our detailed analytical dividend report.
• The analysis detailed in our Riso Kagaku valuation report hints at an inflated share price compared to its estimated value.

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.

• Click here and access our complete dividend analysis report to understand the dynamics of transcosmos.
• Insights from our recent valuation report point to the potential undervaluation of transcosmos shares in the market.

Summing It All Up

• Investigate our full lineup of 373 Top Dividend Stocks right here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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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