Top 10 Japanese Dividend Aristocrats

In this article, I will reveal the companies in Japan with the longest consecutive streaks of dividend increases, showcasing the crème de la crème of Japanese stock market's dividend aristocracy

Please note: This article is for informational purposes only and is not intended as investment advice. The mention of specific stocks is not a recommendation to buy or sell any securities.

Table of Content

• Introduction

• Japan's Top 20 Dividend Aristocrats

• Top 3 Dividend Aristocrats in Depth

• Conclusion

Introduction

In late 2022, I created a list of the top 20 Japanese dividend kings, but much has changed since then. The Japanese government has been actively naming and shaming companies hoarding cash without benefiting shareholders. This initiative has led to a reevaluation of shareholder value practices across Japan.

Additionally, for the first time since the 90s, Japan's stock market has experienced a historic rally, surpassing its bubble-era highs. This surge has redefined market dynamics and investor expectations. Concurrently, Japan is witnessing inflation for the first time in 30 years, impacting both the nature and value of dividends and the unique Japanese tradition of shareholder gifts - ranging from food and drinks to hotel stays.

Given these significant changes, I've updated my list to feature Japan's top 10 Dividend Aristocrats for 2024. These stocks stand out for their consistent dividend growth, a feat not easy to achieve. Regularly increasing dividends requires sustained profitability and prudent financial management, as paying dividends from non-distributable earnings is illegal.

This new list not only highlights stocks with a history of increasing dividends but also examines dividend yields, growth rates, and payout ratios. This comprehensive approach provides a clearer picture of each company's financial health and future dividend potential.

As a short reminder of what these terms mean:

• Dividend Kings

  • Years of Consecutive Dividend Increases: 50+ years.

  • Description: An elite group of companies with the longest track record of increasing dividends annually for over half a century.

• Dividend Aristocrats/Champions

  • Years of Consecutive Dividend Increases: 25+ years.

  • Description: Companies that have consistently raised dividends annually for at least 25 years.

  • Note: Dividend is gaining momentum in Japan, where historically it has been less common compared to the U.S. Currently, there are only two recognized dividend aristocrats in Japan. However, this trend is shifting, and these frontrunners are likely on their path to becoming dividend kings in the foreseeable future.

• Dividend Contenders

  • Years of Consecutive Dividend Increases: 10 to 24 years.

  • Description: These are companies on their way to becoming Aristocrats/Champions, having increased dividends for 10 to 24 consecutive years.

• Dividend Challengers

  • Years of Consecutive Dividend Increases: 5 to 9 years.

  • Description: Companies with a shorter track record, having raised dividends annually for 5 to 9 years. They are the initial stage for a company demonstrating consistent dividend growth.

Now for the list you’ve all been waiting for:

Welcome to the 2024 list of…

Japan's Top 20 Dividend Aristocrats: