As global markets navigate a landscape marked by mixed performances and cautious optimism around trade negotiations, investors are keenly observing the impact of economic policies on indices like the S&P 500 and Nasdaq Composite. Amidst this backdrop, dividend stocks offering yields of at least 3.2% present an attractive option for those seeking stable income streams, especially when market volatility underscores the importance of reliable returns.
Below we spotlight a couple of our favorites from our exclusive screener.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Nihon Tokushu Toryo Co., Ltd. manufactures and sells automobile products, paints, and coatings in Japan, with a market cap of ¥35.17 billion.
Operations: Nihon Tokushu Toryo Co., Ltd. generates revenue from its core operations in the manufacture and sale of automobile products, as well as paints and coatings within Japan.
Dividend Yield: 3.4%
Nihon Tokushu Toryo Co., Ltd. offers a stable and growing dividend, having increased its year-end dividend to JPY 38.00 per share from JPY 25.00 last year. The company’s dividends are well-supported by a low payout ratio of 24.1% and cash flow coverage of 42.7%. Despite trading at a discount to its estimated fair value, its dividend yield of 3.38% is below the top quartile in the Japanese market but remains reliable with consistent growth over the past decade.
TSE:4619 Dividend History as at May 2025
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: ANEST IWATA Corporation is engaged in the air energy and coating business across Japan, Europe, the Americas, China, and other international markets with a market cap of ¥43.40 billion.
Operations: ANEST IWATA Corporation generates revenue through its air energy and coating operations across various regions including Japan, Europe, the Americas, and China.
Dividend Yield: 3.2%
ANEST IWATA’s dividends are well-covered by earnings and cash flows, with payout ratios of 39.9% and 32.8%, respectively. However, its dividend yield of 3.21% is lower than the top quartile in Japan, and its dividend track record has been volatile over the past decade despite some growth. Recently, the company reduced its year-end dividend forecast to JPY 23 per share due to challenging market conditions impacting profitability projections for fiscal year ending March 2025.
TSE:6381 Dividend History as at May 2025
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: SAXA, Inc., with a market cap of ¥17.86 billion, develops, manufactures, and sells equipment and components for information and communication systems in Japan through its subsidiaries.
Operations: SAXA, Inc. generates revenue by developing, manufacturing, and selling equipment and components for information and communication systems in Japan through its subsidiaries.
Dividend Yield: 3.6%
SAXA’s dividend yield of 4.38% ranks in the top 25% of Japanese dividend payers, though its payments have been volatile and unreliable over the past decade. The company’s low payout ratio of 22.8% indicates dividends are well-covered by earnings, yet a high cash payout ratio of 341.3% suggests poor coverage by free cash flows, raising sustainability concerns despite strong earnings growth averaging 45.5% annually over five years.
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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.
Companies discussed in this article include TSE:4619 TSE:6381 and TSE:6675.
