3 Leading Japanese Dividend Stocks With Yields Up To 3.9%

Amidst a backdrop of global economic shifts, Japan's stock markets have recently shown robust performance, with indices like the Nikkei 225 and TOPIX reaching all-time highs. This buoyancy in the Japanese market presents an opportune moment to explore dividend stocks, which can offer investors potential for steady income in addition to capital appreciation.

Top 10 Dividend Stocks In Japan

Name	Dividend Yield	Dividend Rating
Yamato Kogyo (TSE:5444)	3.79%	★★★★★★
Business Brain Showa-Ota (TSE:9658)	3.65%	★★★★★★
Globeride (TSE:7990)	3.89%	★★★★★★
HITO-Communications HoldingsInc (TSE:4433)	3.42%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.62%	★★★★★★
Nippon Shokubai (TSE:4114)	4.34%	★★★★★★
KurimotoLtd (TSE:5602)	4.87%	★★★★★★
GakkyushaLtd (TSE:9769)	4.12%	★★★★★★
DoshishaLtd (TSE:7483)	3.58%	★★★★★★
Innotech (TSE:9880)	3.98%	★★★★★★

Click here to see the full list of 392 stocks from our Top Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

JAC Recruitment (TSE:2124)

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

Overview: JAC Recruitment Co., Ltd. is a recruitment consultancy firm based in Japan, with a market capitalization of approximately ¥110.58 billion.

Operations: JAC Recruitment Co., Ltd. specializes in providing recruitment consultancy services in Japan.

Dividend Yield: 3.8%

JAC Recruitment offers a solid dividend yield of 3.76%, ranking in the top 25% of Japanese dividend payers. The dividends are well-supported with a payout ratio of 59.9% and a cash payout ratio of 62.9%, indicating sustainability from both earnings and cash flow perspectives. Over the last decade, dividends have not only been consistent but also exhibited growth, aligning with an earnings increase of 22.9% over the past year and projected annual growth of 18.19%. Additionally, the stock is currently trading at a 26.6% discount to its estimated fair value, enhancing its appeal to value-oriented investors.

• Navigate through the intricacies of JAC Recruitment with our comprehensive dividend report here.
• Upon reviewing our latest valuation report, JAC Recruitment's share price might be too pessimistic.

Nichirin (TSE:5184)

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

Overview: Nichirin Co., Ltd. specializes in the manufacturing and sale of automotive and housing hoses, along with related parts, operating both in Japan and internationally, with a market capitalization of approximately ¥51.15 billion.

Operations: Nichirin Co., Ltd. primarily generates its revenue from the production and sales of automotive and housing hoses, as well as related parts, across both domestic and international markets.

Dividend Yield: 3.9%

Nichirin Co., Ltd. presents a mixed scenario for dividend investors, marked by a 10-year history of volatile dividends despite recent stability. The company's dividends are well-supported with both a low payout ratio and cash payout ratio at 30.9% and 30.6%, respectively, ensuring coverage from earnings and cash flows. Additionally, the stock trades significantly below its estimated fair value by 58.9%, potentially offering attractive entry points for value-focused investors looking for dividend plays in Japan's market.

• Dive into the specifics of Nichirin here with our thorough dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Nichirin shares in the market.

Daishinku (TSE:6962)

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

Overview: Daishinku Corp. specializes in the production and sale of electronic components and equipment, operating across regions including Japan, North America, Europe, China, Taiwan, and Asia with a market capitalization of ¥24.47 billion.

Operations: Daishinku Corp. generates its revenue primarily from the production and sales of electronic components, serving markets in Japan, North America, Europe, China, Taiwan, and other Asian countries.

Dividend Yield: 3.7%

Daishinku exhibits a lower Price-To-Earnings ratio at 13x compared to the Japanese market average of 14.4x, suggesting a potentially undervalued position. The company maintains a sustainable dividend with a payout ratio of 58.1% and cash payout ratio of 26.9%, ensuring dividends are well-covered by both earnings and cash flows. However, it has experienced unstable dividend payments over the past decade and profit margins have declined from 8.3% to 4.8% over the last year, indicating some financial volatility and challenges in maintaining profitability levels.

• Click here and access our complete dividend analysis report to understand the dynamics of Daishinku.
• Our expertly prepared valuation report Daishinku implies its share price may be too high.

Next Steps

• Dive into all 392 of the Top Dividend Stocks we have identified here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Ready To Venture Into Other Investment Styles?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com