Stock Analysis

Japanese Dividend Stocks To Watch: 3 Top Picks

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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

NameDividend YieldDividend 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.

TSE:3486 Dividend History as at Aug 2024

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.

TSE:4293 Dividend History as at Aug 2024

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.

TSE:8316 Dividend History as at Aug 2024

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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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