3 Japanese Dividend Stocks Yielding Up To 5.1%

Japan's stock markets have recently experienced notable gains, with the Nikkei 225 Index rising 5.6% and the broader TOPIX Index up 3.7%, buoyed by optimism surrounding China's stimulus measures and dovish signals from the Bank of Japan. In this favorable market environment, dividend stocks in Japan are attracting attention as potential sources of steady income, offering investors a way to benefit from both capital appreciation and regular payouts.

Top 10 Dividend Stocks In Japan

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.18%	★★★★★★
Yamato Kogyo (TSE:5444)	4.15%	★★★★★★
Intelligent Wave (TSE:4847)	3.88%	★★★★★★
KurimotoLtd (TSE:5602)	5.02%	★★★★★★
Mitsubishi Research Institute (TSE:3636)	3.85%	★★★★★★
Innotech (TSE:9880)	4.84%	★★★★★★
Business Brain Showa-Ota (TSE:9658)	4.28%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.44%	★★★★★★
CAC Holdings (TSE:4725)	4.47%	★★★★★★
GakkyushaLtd (TSE:9769)	4.54%	★★★★★★

Click here to see the full list of 445 stocks from our Top Japanese Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Yagami (NSE:7488)

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

Overview: Yagami Inc. is a specialized trading company focused on the educational market in Japan with a market cap of ¥15.17 billion.

Operations: Yagami Inc.'s revenue comprises ¥2.81 billion from Industrial Machine, ¥5.31 billion from Scientific Equipment, and ¥2.71 billion from Health and Medical Equipment segments.

Dividend Yield: 5.1%

Yagami Inc. offers a compelling dividend profile, with stable and growing dividends over the past decade. Its current yield of 5.12% ranks in the top 25% of Japanese dividend payers, supported by a reasonable payout ratio of 67%. The cash payout ratio is higher at 89.4%, indicating that while dividends are covered by earnings, they are more tightly aligned with cash flows. Yagami also trades at a significant discount to its estimated fair value.

• Click to explore a detailed breakdown of our findings in Yagami's dividend report.
• Our valuation report here indicates Yagami may be undervalued.

Inpex (TSE:1605)

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

Overview: Inpex Corporation is involved in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources across various regions including Japan, Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas with a market cap of ¥2.56 trillion.

Operations: Inpex Corporation's revenue is primarily derived from its activities in oil, natural gas, and mineral resources across Japan, Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas.

Dividend Yield: 4.1%

Inpex offers a strong dividend profile with stable and growing dividends over the past decade, supported by a low payout ratio of 36.3% and cash payout ratio of 26.2%. Its current yield of 4.13% is in the top 25% of Japanese dividend payers. Recent announcements include an increased year-end dividend guidance to ¥43 per share and a share buyback program aimed at enhancing shareholder returns, reflecting commitment to capital efficiency.

• Take a closer look at Inpex's potential here in our dividend report.
• The valuation report we've compiled suggests that Inpex's current price could be inflated.

Nippon Concept (TSE:9386)

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

Overview: Nippon Concept Corporation offers liquid cargo logistics solutions both in Japan and internationally, with a market cap of ¥24.19 billion.

Operations: Nippon Concept Corporation's revenue is derived from providing logistics solutions for liquid cargo in Japan and international markets.

Dividend Yield: 3.4%

Nippon Concept provides a reliable dividend with stable and growing payments over the past decade, supported by a low payout ratio of 38% and cash payout ratio of 39.9%. Although its yield of 3.44% is below the top quartile in Japan, dividends are well-covered by earnings and cash flows. The stock trades significantly below its estimated fair value, suggesting potential for capital appreciation alongside its dependable dividend profile.

• Click here and access our complete dividend analysis report to understand the dynamics of Nippon Concept.
• The analysis detailed in our Nippon Concept valuation report hints at an inflated share price compared to its estimated value.

Summing It All Up

• Delve into our full catalog of 445 Top Japanese Dividend Stocks here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
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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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