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As Japan's equity markets show resilience with the Nikkei 225 and TOPIX indices both posting gains despite economic headwinds, investors may find opportunities in high-yield dividend stocks. In a market environment where economic contraction and cautious monetary policy prevail, selecting stocks with robust dividend yields could be a prudent strategy for those seeking income alongside potential capital appreciation.
Top 10 Dividend Stocks In Japan
| Name | Dividend Yield | Dividend Rating |
| Yamato Kogyo (TSE:5444) | 3.43% | ★★★★★★ |
| Business Brain Showa-Ota (TSE:9658) | 3.57% | ★★★★★★ |
| Globeride (TSE:7990) | 3.52% | ★★★★★★ |
| Nihon Parkerizing (TSE:4095) | 3.33% | ★★★★★★ |
| FALCO HOLDINGS (TSE:4671) | 3.49% | ★★★★★★ |
| HITO-Communications HoldingsInc (TSE:4433) | 3.46% | ★★★★★★ |
| Ryoyu Systems (TSE:4685) | 3.45% | ★★★★★★ |
| Mitsubishi Research Institute (TSE:3636) | 3.36% | ★★★★★★ |
| GakkyushaLtd (TSE:9769) | 4.08% | ★★★★★★ |
| Innotech (TSE:9880) | 4.01% | ★★★★★★ |
Click here to see the full list of 355 stocks from our Top Dividend Stocks screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Mitsui DM Sugar Holdings
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Mitsui DM Sugar Holdings Co., Ltd. is engaged in the manufacturing and selling of sugar and food materials primarily in Japan, with a market capitalization of approximately ¥103.75 billion.
Operations: Mitsui DM Sugar Holdings Co., Ltd. primarily generates its revenue from the production and sale of sugar and food materials within Japan.
Dividend Yield: 3.7%
Mitsui DM Sugar Holdings offers a dividend yield of 3.73%, ranking in the top quartile of Japanese dividend payers. Despite a lower-than-average price-to-earnings ratio of 12.3x, the company's dividends have shown volatility over the past decade, with an unstable track record. However, both earnings and cash flows substantiate current payouts with payout ratios at 33% and cash payout ratios at 75.3%, respectively. Earnings growth has been robust, averaging 26.1% annually over the last five years.
Persol HoldingsLtd
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Persol Holdings Co., Ltd. operates globally, offering human resource services under the PERSOL brand, with a market capitalization of approximately ¥541.04 billion.
Operations: Persol Holdings Co., Ltd. specializes in providing diverse human resource services on a global scale.
Dividend Yield: 3.6%
Persol Holdings Ltd. offers a dividend yield of 3.63%, placing it among the top 25% of Japanese dividend payers. Despite a high payout ratio of 101.2%, indicating dividends are not well covered by earnings, the cash payout ratio stands at a more manageable 31.6%. The company's dividends have increased over the past decade but have been marked by volatility and unreliability in their growth pattern. Recently, Persol announced a share buyback program worth ¥20 billion to repurchase up to 5.41% of its shares by March 2025, aiming to boost shareholder returns amidst earnings growth forecasts of 11.79% per year.