3 High-Yield Dividend Stocks On The Tokyo Stock Exchange With Yields Up To 3.7%

As global markets navigate through a complex landscape marked by geopolitical tensions and economic shifts, Japan’s stock market has experienced a downturn, particularly impacting technology stocks due to potential U.S. restrictions on semiconductor exports. In this context, high-yield dividend stocks on the Tokyo Stock Exchange present an interesting consideration for investors looking for potential income in a volatile environment.

Top 10 Dividend Stocks In Japan

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

Overview: Pro-Ship Incorporated specializes in the development, sale, consulting, and customization of solution packages for asset management and sales management in Japan, with a market capitalization of ¥18.56 billion.

Operations: Pro-Ship Incorporated generates revenue primarily through the development, sale, consulting, and customization of solution packages focused on asset management and sales management.

Dividend Yield: 3.5%

Pro-Ship’s dividend yield of 3.46% is slightly below the top quartile in the Japanese market, though its dividends are reliably supported by a payout ratio of 46.8% and a cash payout ratio of 51.8%, indicating sustainability from both earnings and cash flow perspectives. Over the past decade, dividends per share have shown stability with an increase, alongside earnings growth at an annual rate of 4.8%. The stock’s price-to-earnings ratio stands favorable at 13.8x compared to the market average.

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

Overview: Oji Holdings Corporation operates in the pulp and paper industry, serving both domestic and international markets, with a market capitalization of approximately ¥633.19 billion.

Operations: Oji Holdings Corporation generates its revenue primarily from the pulp and paper industry, catering to markets both in Japan and globally.

Dividend Yield: 3.7%

Oji Holdings has demonstrated a consistent dividend policy, recently affirming a JPY 8.00 per share payout and projecting an increase to JPY 12.00 for the next fiscal year. The company’s dividends are well-supported by earnings and cash flows, with a payout ratio of 31.2% and a cash payout ratio of 26.9%. Despite revised downward earnings guidance for FY2024, Oji maintains robust future sales and profit forecasts, indicating potential stability in its dividend payments amidst financial adjustments.

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

Overview: Altech Corporation, operating both in Japan and internationally, offers technical and engineering assignment services with a market capitalization of approximately ¥54.40 billion.

Operations: Altech Corporation generates its revenue primarily from providing technical and engineering assignment services across various global markets.

Dividend Yield: 3.2%

Altech’s dividend history shows a pattern of volatility and unreliability, with significant annual fluctuations over the past decade. Despite this, both earnings and cash flows adequately cover dividends, with payout ratios of 56% and 58.5%, respectively. Recent corporate guidance predicts steady growth in net sales and profits for 2024; however, Altech plans to reduce its dividend per share from JPY 52.00 last year to JPY 44.00 this year, reflecting ongoing caution despite a favorable valuation at 22.5% below estimated fair value.

Key Takeaways

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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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