3 Japanese Dividend Stocks To Consider With Up To 4.5% Yield

Japan's stock markets recently experienced volatility due to political developments and monetary policy shifts, with the Nikkei 225 Index and TOPIX Index both registering declines. Despite these fluctuations, investors continue to seek opportunities in dividend stocks, which can offer a steady income stream even amidst market uncertainties. In such an environment, identifying companies with strong fundamentals and consistent dividend payouts can be particularly appealing for those looking to balance risk with potential returns.

Top 10 Dividend Stocks In Japan

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.15%	★★★★★★
Globeride (TSE:7990)	4.17%	★★★★★★
Yamato Kogyo (TSE:5444)	4.08%	★★★★★★
Intelligent Wave (TSE:4847)	3.88%	★★★★★★
KurimotoLtd (TSE:5602)	5.02%	★★★★★★
Mitsubishi Research Institute (TSE:3636)	3.75%	★★★★★★
Business Brain Showa-Ota (TSE:9658)	4.20%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.28%	★★★★★★
CAC Holdings (TSE:4725)	4.43%	★★★★★★
GakkyushaLtd (TSE:9769)	4.48%	★★★★★★

Click here to see the full list of 426 stocks from our Top Japanese Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Pro-Ship (TSE:3763)

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

Overview: Pro-Ship Incorporated develops, sells, consults, and customizes solution packages for asset and sales management in Japan with a market cap of ¥20.62 billion.

Operations: Pro-Ship Incorporated's revenue primarily comes from its Package Solutions segment, which generated ¥6.90 billion.

Dividend Yield: 3.1%

Pro-Ship has introduced a progressive dividend policy, aiming for a payout ratio of 40% or higher. This change follows an increased dividend for the fiscal year ending March 2024 and aims to ensure continued growth in dividends. The company's dividends have been stable and reliably growing over the past decade, with current payments covered by both earnings (41.4% payout ratio) and cash flows (51.9%). Despite being dropped from the S&P Global BMI Index, Pro-Ship's earnings grew by 30% last year.

• Get an in-depth perspective on Pro-Ship's performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Pro-Ship shares in the market.

Sanyo Shokai (TSE:8011)

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

Overview: Sanyo Shokai Ltd. is a company that manufactures and sells men's and women's clothing and accessories in Japan, with a market cap of ¥32.08 billion.

Operations: Sanyo Shokai Ltd. generates revenue through its core activities of producing and selling apparel and accessories for both men and women in Japan.

Dividend Yield: 4.6%

Sanyo Shokai's dividend yield of 4.55% ranks in the top 25% among Japanese dividend payers, supported by a low payout ratio of 41.4%, indicating coverage by both earnings and cash flows. However, its dividend history is marked by volatility with past annual drops over 20%. The recent announcement of a ¥3 billion share buyback program aims to enhance shareholder returns and improve capital efficiency, potentially stabilizing future dividends.

• Delve into the full analysis dividend report here for a deeper understanding of Sanyo Shokai.
• The valuation report we've compiled suggests that Sanyo Shokai's current price could be quite moderate.

Japan Transcity (TSE:9310)

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

Overview: Japan Transcity Corporation operates in the logistics sector both domestically and internationally, with a market cap of ¥61.30 billion.

Operations: Japan Transcity Corporation generates revenue from its logistics operations within Japan and across international markets.

Dividend Yield: 3.5%

Japan Transcity offers a stable dividend, with payments growing steadily over the past decade and a current yield of 3.46%. Its dividends are well-covered by earnings and cash flows, given low payout ratios of 17.2% and 37.6%, respectively. Although its yield is below the top tier in Japan, recent share buybacks totaling ¥314.77 million may improve shareholder value. The company's financial guidance for fiscal year-end March 2025 suggests continued profitability supporting dividend sustainability.

• Click to explore a detailed breakdown of our findings in Japan Transcity's dividend report.
• Our valuation report unveils the possibility Japan Transcity's shares may be trading at a premium.

Turning Ideas Into Actions

• Click here to access our complete index of 426 Top Japanese Dividend Stocks.
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Seeking Other Investments?

• 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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