Top Dividend Stocks On The Japanese Exchange

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Japan's stock markets have recently experienced significant gains, with the Nikkei 225 Index rising 5.6% and the broader TOPIX Index up 3.7%, driven by optimism surrounding China's stimulus measures and dovish commentary from the Bank of Japan. This favorable backdrop highlights the importance of dividend stocks, which can provide a reliable income stream in times of market volatility and economic uncertainty. A good dividend stock typically offers consistent payouts, strong financial health, and a sustainable business model—traits that are especially valuable in today's dynamic market environment.

Top 10 Dividend Stocks In Japan

Name

Dividend Yield

Dividend Rating

Yamato Kogyo (TSE:5444)

4.17%

★★★★★★

Globeride (TSE:7990)

4.33%

★★★★★★

Intelligent Wave (TSE:4847)

3.88%

★★★★★★

KurimotoLtd (TSE:5602)

5.10%

★★★★★★

Mitsubishi Research Institute (TSE:3636)

3.85%

★★★★★★

Innotech (TSE:9880)

4.99%

★★★★★★

Business Brain Showa-Ota (TSE:9658)

4.34%

★★★★★★

FALCO HOLDINGS (TSE:4671)

6.60%

★★★★★★

CAC Holdings (TSE:4725)

4.46%

★★★★★★

GakkyushaLtd (TSE:9769)

4.55%

★★★★★★

Click here to see the full list of 457 stocks from our Top Japanese Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Sakai Heavy Industries

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

Overview: Sakai Heavy Industries, Ltd. manufactures and sells construction equipment and industrial machinery both in Japan and internationally, with a market cap of ¥21.90 billion.

Operations: Sakai Heavy Industries, Ltd. generates revenue from several key regions, including ¥1.96 billion from China, ¥23.01 billion from Japan, ¥6.33 billion from Indonesia, and ¥9.62 billion from the United States.

Dividend Yield: 4.2%

Sakai Heavy Industries offers a dividend yield of 4.19%, placing it in the top 25% of Japanese dividend payers. Despite its attractive yield, the company's dividends have been volatile over the past decade, showing instability and unreliability. However, with a payout ratio of 45.6% and a cash payout ratio of 43.1%, dividends are well-covered by earnings and cash flows. Recent ex-dividend was ¥85 on July 9, indicating continued shareholder returns despite past volatility.

TSE:6358 Dividend History as at Oct 2024
TSE:6358 Dividend History as at Oct 2024

Ferrotec Holdings

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

Overview: Ferrotec Holdings Corporation operates in semiconductor equipment-related and electronic device businesses both in Japan and internationally, with a market cap of ¥116.09 billion.