Top 3 Dividend Stocks On The Japanese Exchange

Japan’s stock markets recently experienced significant volatility, driven by a rebounding yen and concerns over global growth. However, reassurances from the Bank of Japan have helped stabilize the situation, making it an opportune moment to explore dividend stocks on the Japanese exchange. In such a fluctuating market environment, dividend stocks can offer a measure of stability and income potential for investors seeking reliable returns.

Top 10 Dividend Stocks In Japan

Name	Dividend Yield	Dividend Rating
Yamato Kogyo (TSE:5444)	4.38%	★★★★★★
Tsubakimoto Chain (TSE:6371)	4.15%	★★★★★★
Globeride (TSE:7990)	4.21%	★★★★★★
Business Brain Showa-Ota (TSE:9658)	4.04%	★★★★★★
Mitsubishi Shokuhin (TSE:7451)	3.97%	★★★★★★
Mitsubishi Research Institute (TSE:3636)	3.91%	★★★★★★
KurimotoLtd (TSE:5602)	5.17%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.86%	★★★★★★
E J Holdings (TSE:2153)	3.95%	★★★★★★
Innotech (TSE:9880)	4.90%	★★★★★★

Click here to see the full list of 471 stocks from our Top Japanese Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

UT GroupLtd (TSE:2146)

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

Overview: UT Group Co., Ltd. (TSE:2146) engages in the dispatch and outsourcing of permanent employees across manufacturing, design and development, construction, and other sectors in Japan, with a market cap of ¥117.66 billion.

Operations: UT Group Co., Ltd. generates revenue from several segments, including Area Business (¥63.52 billion), Foreign Operation (¥10.91 billion), Solution Business (¥17.89 billion), Engineering Business (¥9.30 billion), and Manufacturing Business excluding Solution Business (¥65.46 billion).

Dividend Yield: 5.6%

UT Group Ltd. offers an attractive dividend yield of 5.57%, placing it in the top 25% of dividend payers in Japan. However, its dividends are not well covered by free cash flows, with a high cash payout ratio of 265.7%. Despite a reasonable payout ratio of 59.9%, earnings growth over the past year was strong at 66%. The company has increased dividends over the past decade but has experienced volatility and instability in its payments.

• Dive into the specifics of UT GroupLtd here with our thorough dividend report.
• In light of our recent valuation report, it seems possible that UT GroupLtd is trading behind its estimated value.

Yushiro Chemical Industry (TSE:5013)

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

Overview: Yushiro Chemical Industry Co., Ltd., with a market cap of ¥22.29 billion, manufactures and sells metalworking oils, fluids, and building maintenance chemicals globally.

Operations: Yushiro Chemical Industry Co., Ltd. generates its revenue primarily from the production and distribution of metalworking oils, fluids, and chemicals for building maintenance on a global scale.

Dividend Yield: 4.3%

Yushiro Chemical Industry's dividend yield of 4.27% ranks in the top 25% of Japanese dividend payers, supported by low payout ratios (earnings: 25.5%, cash flows: 26.4%). Despite this, dividends have been volatile over the past decade, with recent decreases from ¥50 to ¥40 per share for FY2025. The company has shown strong earnings growth (165.6% last year), but its highly volatile share price and inconsistent dividend history raise concerns for long-term reliability.

• Take a closer look at Yushiro Chemical Industry's potential here in our dividend report.
• The valuation report we've compiled suggests that Yushiro Chemical Industry's current price could be quite moderate.

Noritsu Koki (TSE:7744)

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

Overview: Noritsu Koki Co., Ltd. manufactures and sells audio equipment and peripheral products in Japan, with a market cap of ¥130.78 billion.

Operations: Noritsu Koki Co., Ltd. generates revenue from the manufacturing and sale of audio equipment and peripheral products in Japan.

Dividend Yield: 3.2%

Noritsu Koki's dividend yield of 3.17% is below the top 25% in Japan, and its dividend history has been volatile over the past decade. Despite a significant earnings growth of 269.9% last year, future earnings are forecasted to decline by an average of 5.4% annually over the next three years. The company trades at a substantial discount to its estimated fair value and offers good relative value compared to peers, with dividends well-covered by both earnings (28.6%) and cash flows (76.2%).

• Click here to discover the nuances of Noritsu Koki with our detailed analytical dividend report.
• Our comprehensive valuation report raises the possibility that Noritsu Koki is priced lower than what may be justified by its financials.

Seize The Opportunity

• Dive into all 471 of the Top Japanese Dividend Stocks we have identified here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Contemplating Other Strategies?

• 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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