Top Dividend Stocks In Japan For July 2024
As Japan's stock markets continue to reach new heights, with the Nikkei 225 and TOPIX indices both setting records, investors may find opportunities in dividend stocks that offer potential for steady income. Amid these buoyant conditions, understanding the characteristics that make a good dividend stock is crucial, particularly in a market environment where wage increases and consumer spending trends play significant roles.
Top 10 Dividend Stocks In Japan
Name | Dividend Yield | Dividend Rating |
Yamato Kogyo (TSE:5444) | 3.79% | ★★★★★★ |
Business Brain Showa-Ota (TSE:9658) | 3.59% | ★★★★★★ |
Koei Tecmo Holdings (TSE:3635) | 3.89% | ★★★★★★ |
Globeride (TSE:7990) | 3.78% | ★★★★★★ |
HITO-Communications HoldingsInc (TSE:4433) | 3.41% | ★★★★★★ |
FALCO HOLDINGS (TSE:4671) | 6.59% | ★★★★★★ |
KurimotoLtd (TSE:5602) | 4.88% | ★★★★★★ |
GakkyushaLtd (TSE:9769) | 4.12% | ★★★★★★ |
DoshishaLtd (TSE:7483) | 3.57% | ★★★★★★ |
Innotech (TSE:9880) | 3.97% | ★★★★★★ |
Click here to see the full list of 383 stocks from our Top Dividend Stocks screener.
Let's dive into some prime choices out of from the screener.
Dai-Dan
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Dai-Dan Co., Ltd. specializes in designing, supervising, and constructing electrical, air conditioning, plumbing and sanitary, and firefighting facilities in Japan with a market cap of approximately ¥130.91 billion.
Operations: Dai-Dan Co., Ltd. primarily generates revenue through projects related to electrical systems, air conditioning, plumbing and sanitary services, and firefighting installations across Japan.
Dividend Yield: 3.2%
Dai-Dan's recent dividend cut from JPY 55.00 to JPY 48.00 per share reflects a cautious fiscal approach amidst its stable but unexceptional dividend yield of 3.23%, slightly below the top quartile of Japanese dividend stocks at 3.41%. Despite this, Dai-Dan has maintained reliable and growing dividends over the past decade, supported by a sustainable payout ratio of 27.7%. However, the dividends are not well covered by cash flows or free cash flow, highlighting potential risks in sustained payout levels despite an expected increase to JPY 55.00 next year and forecasted earnings growth of 11.77% annually.
Navigate through the intricacies of Dai-Dan with our comprehensive dividend report here.
Our expertly prepared valuation report Dai-Dan implies its share price may be lower than expected.
Mitsubishi Research Institute
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Mitsubishi Research Institute, Inc. offers research, consulting, and ICT solutions to various sectors in Japan, with a market capitalization of approximately ¥80.91 billion.
Operations: Mitsubishi Research Institute, Inc. delivers a range of services including research and consulting, as well as ICT solutions across multiple sectors within Japan.
Dividend Yield: 3.1%
Mitsubishi Research Institute offers a steady dividend yield of 3.08%, underpinned by a decade of consistent and growing payouts. With a lower than average Price-To-Earnings ratio at 13.7x compared to the Japanese market's 14.4x, it presents value relative to peers. The dividends are well supported by both earnings and cash flows, with payout ratios at 20% and 51.1% respectively, ensuring sustainability despite its yield being slightly below the top quartile benchmark of 3.41%.
SuzukiLtd
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Suzuki Ltd., primarily engaged in manufacturing and selling connectors for car electronics parts in Japan, has a market capitalization of approximately ¥20.20 billion.
Operations: Suzuki Ltd. generates its revenue primarily from the production and sale of connectors used in automotive electronics within Japan.
Dividend Yield: 3.2%
SuzukiLtd maintains a consistent dividend yield of 3.21%, slightly below the top quartile of Japanese dividend stocks. The company's dividends are sustainably supported, evidenced by a low payout ratio of 18.7% and cash payout ratio of 26.6%. This financial prudence ensures dividends are well-covered by both earnings and cash flows, despite a yield that isn't industry-leading. Additionally, SuzukiLtd has demonstrated reliability in its dividend distribution, with stable payments over the past decade and an expected earnings growth rate of 10.52% per year.
Unlock comprehensive insights into our analysis of SuzukiLtd stock in this dividend report.
Our valuation report unveils the possibility SuzukiLtd's shares may be trading at a discount.
Turning Ideas Into Actions
Reveal the 383 hidden gems among our Top Dividend Stocks screener with a single click here.
Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.
Searching for a Fresh Perspective?
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.
Companies discussed in this article include TSE:1980 TSE:3636 and TSE:6785.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com