Sumiseki HoldingsInc And 2 Other Top Dividend Stocks On The Japanese Exchange

Japan's stock markets have recently experienced a downturn, with the Nikkei 225 Index and the broader TOPIX Index both showing declines in local currency terms. This comes amid easing domestic inflation and ongoing speculation regarding future interest rate decisions by the Bank of Japan. In this context, investors often look towards dividend stocks, such as Sumiseki Holdings Inc., which can provide a steady income stream and potential stability during uncertain market conditions.

Top 10 Dividend Stocks In Japan

Name	Dividend Yield	Dividend Rating
Yamato Kogyo (TSE:5444)	4.25%	★★★★★★
Globeride (TSE:7990)	4.29%	★★★★★★
Intelligent Wave (TSE:4847)	3.99%	★★★★★★
KurimotoLtd (TSE:5602)	5.39%	★★★★★★
Innotech (TSE:9880)	4.70%	★★★★★★
CAC Holdings (TSE:4725)	4.63%	★★★★★★
Business Brain Showa-Ota (TSE:9658)	4.33%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.49%	★★★★★★
E J Holdings (TSE:2153)	3.82%	★★★★★★
GakkyushaLtd (TSE:9769)	4.57%	★★★★★★

Click here to see the full list of 455 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. is engaged in the import, purchase, and sale of coal in Japan, with a market capitalization of ¥47.99 billion.

Operations: Sumiseki Holdings Inc. generates revenue through its Coal Business, which accounts for ¥16.94 billion, along with contributions from its Quarrying Business at ¥546 million and New Material Business at ¥269 million.

Dividend Yield: 4.5%

Sumiseki Holdings Inc. offers a compelling dividend profile with its dividends well-covered by both earnings and cash flows, boasting a payout ratio of 41.6% and a cash payout ratio of 11.5%. Despite having paid dividends for less than a decade, the payments have been reliable and growing steadily. However, investors should note the stock's high volatility over recent months and its short dividend history relative to more established payers in Japan.

• Click to explore a detailed breakdown of our findings in Sumiseki HoldingsInc's dividend report.
• Our comprehensive valuation report raises the possibility that Sumiseki HoldingsInc is priced lower than what may be justified by its financials.

Nippon Shinyaku (TSE:4516)

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

Overview: Nippon Shinyaku Co., Ltd. is a company engaged in the manufacturing and sale of pharmaceuticals and foodstuffs both in Japan and internationally, with a market capitalization of approximately ¥275.94 billion.

Operations: Nippon Shinyaku Co., Ltd.'s revenue segments include Pharmaceuticals, generating ¥127.97 billion, and Functional Food, contributing ¥22.40 billion.

Dividend Yield: 3%

Nippon Shinyaku's dividend payments have been reliable and stable over the past decade, with consistent growth. However, its high cash payout ratio of 99.5% indicates dividends are not well covered by free cash flow, raising sustainability concerns. Despite a low payout ratio of 30.5%, earnings are expected to decline by an average of 10.2% annually over the next three years, potentially impacting future payouts. The stock trades at a favorable P/E ratio of 10.1x compared to the JP market average.

• Navigate through the intricacies of Nippon Shinyaku with our comprehensive dividend report here.
• Our valuation report unveils the possibility Nippon Shinyaku's shares may be trading at a discount.

Parker (TSE:9845)

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

Overview: Parker Corporation engages in product development, manufacturing, sales, and technical services across various industries including automobiles, electrical machinery, chemicals, steel, electronics, and food with a market cap of ¥19.26 billion.

Operations: Parker Corporation's revenue segments include automobiles, electrical machinery, chemicals, steel, electronics, and food.

Dividend Yield: 3.2%

Parker's dividends are well covered by earnings and cash flows, with a low payout ratio of 20.2% and a cash payout ratio of 15.8%. Despite this coverage, the company's dividend history over the past decade has been marked by volatility and unreliability. Its current yield of 3.25% is below the top quartile in Japan, but it trades significantly below its estimated fair value, offering potential value to investors seeking growth alongside income.

• Unlock comprehensive insights into our analysis of Parker stock in this dividend report.
• The valuation report we've compiled suggests that Parker's current price could be quite moderate.

Taking Advantage

• Take a closer look at our Top Japanese Dividend Stocks list of 455 companies by clicking here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Ready For A Different Approach?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com