Japan's stock markets recently experienced significant volatility, driven by a rebounding yen and concerns over global growth. However, dovish comments from the Bank of Japan have helped stabilize the market, making it an opportune moment to explore dividend stocks. In such a fluctuating environment, dividend stocks can offer a measure of stability and income. Here are three Japanese dividend stocks to watch that could provide both resilience and returns in these uncertain times.
Top 10 Dividend Stocks In Japan
| Name | Dividend Yield | Dividend Rating |
| Takeuchi Mfg (TSE:6432) | 4.73% | ★★★★★★ |
| Yamato Kogyo (TSE:5444) | 4.31% | ★★★★★★ |
| Tsubakimoto Chain (TSE:6371) | 4.03% | ★★★★★★ |
| AiphoneLtd (TSE:6718) | 4.70% | ★★★★★★ |
| Globeride (TSE:7990) | 4.11% | ★★★★★★ |
| KurimotoLtd (TSE:5602) | 5.10% | ★★★★★★ |
| FALCO HOLDINGS (TSE:4671) | 6.64% | ★★★★★★ |
| GakkyushaLtd (TSE:9769) | 4.41% | ★★★★★★ |
| E J Holdings (TSE:2153) | 3.91% | ★★★★★★ |
| Innotech (TSE:9880) | 4.80% | ★★★★★★ |
Click here to see the full list of 468 stocks from our Top Japanese Dividend Stocks screener.
Underneath we present a selection of stocks filtered out by our screen.
Global Link Management (TSE:3486)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Global Link Management Inc. operates as a real estate solution company in Japan with a market cap of ¥15.99 billion.
Operations: Global Link Management Inc. generates revenue through real estate solutions in Japan.
Dividend Yield: 5%
Global Link Management's dividend payments are well-covered by both earnings (payout ratio: 30.2%) and free cash flows (cash payout ratio: 9.5%). Despite a high level of debt and a volatile share price over the past three months, the company's dividends have been stable, though it has only paid dividends for seven years. With a Price-To-Earnings ratio of 6x, below the JP market average of 12.6x, and a top-tier dividend yield of 5.01%, it offers value to investors seeking income.
- Click here and access our complete dividend analysis report to understand the dynamics of Global Link Management.
- Our valuation report here indicates Global Link Management may be overvalued.
Septeni Holdings (TSE:4293)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Septeni Holdings Co., Ltd., with a market cap of ¥84.63 billion, operates through its subsidiaries in the digital marketing and media platform businesses both in Japan and internationally.
Operations: Septeni Holdings Co., Ltd. generates revenue from its Media Platform segment, which contributes ¥4.96 billion, and its Digital Marketing segment, which brings in ¥25.91 billion.
Dividend Yield: 7.7%
Septeni Holdings recently increased its year-end dividend forecast for 2024 to JPY 31.35 per share, up from JPY 7.90, reflecting a significant policy shift. Despite a low payout ratio of 19.7%, the company's dividends are not well covered by cash flows (cash payout ratio: 176.2%). Historically, dividends have been volatile and unreliable over the past decade. However, with a top-tier dividend yield of 7.68%, it remains attractive to income-focused investors in Japan's market.
- Delve into the full analysis dividend report here for a deeper understanding of Septeni Holdings.
- Our valuation report unveils the possibility Septeni Holdings' shares may be trading at a discount.
Sumitomo Mitsui Financial Group (TSE:8316)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Sumitomo Mitsui Financial Group, Inc., with a market cap of ¥12.19 trillion, provides a wide range of financial services including banking, leasing, securities, and consumer finance across Japan and various international regions.
Operations: Sumitomo Mitsui Financial Group's revenue segments include the Global Business Unit (¥1.40 billion), Market Business Unit (¥545.40 million), Retail Business Unit (¥1.32 billion), and Wholesale Business Sector (¥866.40 million).
Dividend Yield: 3.5%
Sumitomo Mitsui Financial Group offers a reliable dividend of 3.54%, with payments well covered by earnings due to a low payout ratio of 35.8%. The company has maintained stable dividends over the past decade, and its earnings have grown at an annual rate of 22.5% over the last five years. Recent share buybacks totaling ¥100 billion underscore its commitment to enhancing shareholder returns, although it's worth noting that its dividend yield is slightly below Japan's top quartile payers.
- Dive into the specifics of Sumitomo Mitsui Financial Group here with our thorough dividend report.
- The analysis detailed in our Sumitomo Mitsui Financial Group valuation report hints at an deflated share price compared to its estimated value.
Next Steps
- Unlock more gems! Our Top Japanese Dividend Stocks screener has unearthed 465 more companies for you to explore.Click here to unveil our expertly curated list of 468 Top Japanese Dividend Stocks.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
- Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
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.
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About TSE:4293
Septeni Holdings
Through its subsidiaries, engages in the digital marketing and media platform businesses in Japan and internationally.
Flawless balance sheet average dividend payer.
