3 Japanese Dividend Stocks Offering Up To 3.6% Yield

Amidst a backdrop of market fluctuations and currency interventions, Japan’s financial landscape presents a complex yet intriguing opportunity for investors. Particularly noteworthy is the recent intervention to support the yen, which has implications for export-driven sectors and influences asset pricing dynamics in the country. In such an environment, selecting dividend stocks that offer stability and attractive yields can be particularly appealing to those looking to balance risk with potential income generation in their investment portfolios.

Top 10 Dividend Stocks In Japan

Click here to see the full list of 384 stocks from our Top Japanese Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

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

Overview: Nisshin OilliO Group Ltd operates in various sectors including oil and fat, processed foods, fine chemicals, and more across Japan, Malaysia, China, Europe, the United States, and internationally with a market capitalization of approximately ¥168.87 billion.

Operations: Nisshin OilliO Group Ltd generates revenue through its involvement in the production of oils and fats, processed food products, and fine chemicals, serving a diverse international market.

Dividend Yield: 3.5%

Nisshin OilliO Group Ltd. offers a solid dividend yield of 3.45%, placing it in the top 25% of Japanese dividend payers. The company’s dividends are well-supported, with a low cash payout ratio of 26.6% and an earnings payout ratio of 31.2%. Dividends have been stable over the past decade and are on an upward trend, indicating reliability and sustainability. Additionally, recent announcements confirm a significant increase in its annual dividend to JP¥110 per share from JP¥75 last year, effective June 28, underscoring its commitment to shareholder returns amidst positive earnings growth forecasts.

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

Overview: Itochu Enex Co., Ltd. operates in the distribution of petroleum products and liquefied petroleum gas (LPG) both domestically and internationally, with a market capitalization of approximately ¥180.05 billion.

Operations: Itochu Enex Co., Ltd. generates revenue through its Car Life Business (¥63.62 billion), Home Life Business (¥7.74 billion), Power and Utility Business (¥12.07 billion), and Industrial Business Division (¥14.95 billion).

Dividend Yield: 3.5%

Itochu Enex Co., Ltd. maintains a robust dividend yield of 3.51%, ranking it favorably among Japanese dividend stocks. With a history of stable dividends over the past decade and recent increases to ¥28.00 per share, its commitment to shareholder returns is evident. The dividends are comfortably supported by both earnings and cash flows, with payout ratios of 43.9% and 30.9% respectively, ensuring sustainability amidst corporate leadership transitions projected for September 2024.

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

Overview: Nippon Gas Co., Ltd. operates in Japan, focusing on the supply and sale of LP gas and natural gas, with a market capitalization of approximately ¥279.12 billion.

Operations: Nippon Gas Co., Ltd. primarily generates its revenue through the distribution of LP gas and natural gas within Japan.

Dividend Yield: 3.7%

Nippon Gas offers a dividend yield of 3.69%, above the Japanese market average, despite a history of volatility in its dividend payments. The dividends are supported by earnings and cash flows with payout ratios of 60.6% and 74.8% respectively, indicating reasonable coverage. Recent corporate actions include a share buyback program targeting up to ¥3 billion, aiming to repurchase 1.35% of its issued capital by end-2024, reflecting potential confidence in its financial health and commitment to shareholder value.

Turning Ideas Into Actions

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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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