Stock Analysis

3 Top Japanese Dividend Stocks Yielding Up To 4.5%

TSE:3299
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Amid recent market volatility, Japan's stock markets have experienced notable declines, with the Nikkei 225 Index dropping 5.8% and the broader TOPIX Index losing 4.2%. Despite these challenges, dividend stocks remain an attractive option for investors seeking steady income and potential resilience during uncertain times. In this environment, a good dividend stock is typically characterized by a strong balance sheet, consistent earnings growth, and a commitment to returning capital to shareholders through dividends.

Top 10 Dividend Stocks In Japan

NameDividend YieldDividend Rating
Globeride (TSE:7990)4.38%★★★★★★
Yamato Kogyo (TSE:5444)4.26%★★★★★★
Tsubakimoto Chain (TSE:6371)4.23%★★★★★★
Mitsubishi Research Institute (TSE:3636)3.93%★★★★★★
Innotech (TSE:9880)4.87%★★★★★★
CAC Holdings (TSE:4725)4.67%★★★★★★
Business Brain Showa-Ota (TSE:9658)4.35%★★★★★★
FALCO HOLDINGS (TSE:4671)6.68%★★★★★★
KurimotoLtd (TSE:5602)4.90%★★★★★★
GakkyushaLtd (TSE:9769)4.44%★★★★★★

Click here to see the full list of 467 stocks from our Top Japanese Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Sumiseki HoldingsInc (TSE:1514)

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

Overview: Sumiseki Holdings, Inc. imports, purchases, and sells coal in Japan with a market cap of ¥51.23 billion.

Operations: Sumiseki Holdings, Inc. generates revenue from three primary segments: Coal Business (¥16.94 billion), Quarrying Business (¥546 million), and New Material Business (¥269 million).

Dividend Yield: 4.2%

Sumiseki Holdings Inc. has shown strong earnings growth of 105.2% over the past year, supporting its dividend payments with a low payout ratio of 41.6% and a cash payout ratio of 11.5%. Its dividend yield of 4.22% places it in the top quartile among Japanese stocks, although it has been paying dividends for less than ten years and exhibits high share price volatility recently. The company will report Q1, 2025 results on July 31, 2024.

TSE:1514 Dividend History as at Sep 2024
TSE:1514 Dividend History as at Sep 2024

MUGEN ESTATELtd (TSE:3299)

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

Overview: MUGEN ESTATE Co., Ltd. purchases and resells used real estate properties in Japan and has a market cap of ¥35.09 billion.

Operations: MUGEN ESTATE Ltd. generates revenue primarily through its Real Estate Buying and Selling Business, which accounts for ¥54.55 billion, and its Rental and Other Businesses, which contribute ¥2.38 billion.

Dividend Yield: 4.5%

MUGEN ESTATE Ltd.'s dividend yield of 4.55% places it in the top quartile among Japanese stocks, but its sustainability is questionable due to a high cash payout ratio of 306.2%. Despite earnings covering dividends with a low payout ratio of 31%, free cash flows fall short, and past dividend payments have been volatile. Recent strategic moves include opening new sales offices in regional areas and completing a share buyback program worth ¥499.93 million to enhance shareholder returns.

TSE:3299 Dividend History as at Sep 2024
TSE:3299 Dividend History as at Sep 2024

Daiichikosho (TSE:7458)

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

Overview: Daiichikosho Co., Ltd. operates in Japan, focusing on the sale and rental of commercial karaoke systems, with a market cap of ¥183.46 billion.

Operations: Daiichikosho Co., Ltd.'s revenue segments include ¥61.10 billion from Commercial Karaoke, ¥65.50 billion from the Karaoke and Restaurant Business, and ¥6.50 billion from Music Soft.

Dividend Yield: 3.3%

Daiichikosho Co., Ltd. offers a stable dividend, with recent affirmations of ¥28.00 per share for the second quarter and ¥29.00 for the year ending March 31, 2025. However, its dividends are not covered by free cash flows and have a relatively low yield of 3.27%. Despite this, the company has a low payout ratio of 48.6%, indicating earnings cover dividends well. Recent buyback plans increase shareholder value but highlight cash flow constraints.

TSE:7458 Dividend History as at Sep 2024
TSE:7458 Dividend History as at Sep 2024

Seize The Opportunity

  • Unlock more gems! Our Top Japanese Dividend Stocks screener has unearthed 464 more companies for you to explore.Click here to unveil our expertly curated list of 467 Top Japanese Dividend Stocks.
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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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