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Top Dividend Stocks On The Japanese Exchange For August 2024

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As Japan's stock markets navigate recent volatility driven by a rebounding yen and shifting central bank policies, investors are seeking stability in dividend-paying stocks. In this environment, identifying companies with strong fundamentals and consistent dividend payouts can provide a reliable income stream amidst market fluctuations.

Top 10 Dividend Stocks In Japan

Name

Dividend Yield

Dividend Rating

Yamato Kogyo (TSE:5444)

4.28%

★★★★★★

Tsubakimoto Chain (TSE:6371)

4.03%

★★★★★★

Business Brain Showa-Ota (TSE:9658)

4.04%

★★★★★★

Globeride (TSE:7990)

4.10%

★★★★★★

KurimotoLtd (TSE:5602)

5.10%

★★★★★★

Innotech (TSE:9880)

4.74%

★★★★★★

Nihon Tokushu Toryo (TSE:4619)

4.07%

★★★★★★

FALCO HOLDINGS (TSE:4671)

6.56%

★★★★★★

GakkyushaLtd (TSE:9769)

4.39%

★★★★★★

E J Holdings (TSE:2153)

3.90%

★★★★★★

Click here to see the full list of 466 stocks from our Top Japanese Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Oriental Shiraishi

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

Overview: Oriental Shiraishi Corporation produces, constructs, and sells prestressed concrete products and structures in Japan, with a market cap of ¥47.17 billion.

Operations: Oriental Shiraishi Corporation's revenue segments include the Construction Business at ¥55.22 billion, Steel Structure Business at ¥8.55 billion, and Port Business at ¥3.67 billion.

Dividend Yield: 4.1%

Oriental Shiraishi Corporation's recent dividend guidance indicates a payment of JPY 7.00 per share for Q2 FY2025 and JPY 7.50 per share for the year-end, down from JPY 8.00 last year. With a payout ratio of 40.6% and cash payout ratio of 51.6%, dividends are well-covered by earnings and cash flows, though payments have been volatile over the past two years despite an overall increase in earnings and dividends during this period.

TSE:1786 Dividend History as at Aug 2024
TSE:1786 Dividend History as at Aug 2024

Kawada Technologies

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

Overview: Kawada Technologies, Inc. operates in Japan's steel, civil engineering, architecture, and IT service sectors with a market cap of ¥44.63 billion.

Operations: Kawada Technologies, Inc. generates revenue from its operations in the steel, civil engineering, architecture, and IT service sectors in Japan.

Dividend Yield: 3.5%

Kawada Technologies' recent amendment to allow interim dividends provides flexibility, but the dividend guidance for FY2025 is significantly reduced to ¥45 per share from ¥393 last year. Despite a low payout ratio of 25.3% and strong cash flow coverage at 14.8%, the company's dividend history has been volatile over the past decade. Earnings grew by 78.7% last year, yet are forecasted to decline by an average of 3.7% annually over the next three years, adding uncertainty for future dividends.