3 Dividend Stocks To Consider With Up To 5.6% Yield

Mitsuboshi Belting’s dividend yield of 4.5% ranks in the top 25% of Japanese dividend payers, yet it faces sustainability issues with a high cash payout ratio of 197%. Despite a reasonable earnings payout ratio of 63.5%, dividends are not well-covered by free cash flows and have been volatile over the past decade. Recent share buybacks totaling ¥999.7 million reflect efforts to enhance shareholder returns, although earnings growth is expected to decline by an average of 9.3% annually over the next three years.

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

Overview: Tokyo Seimitsu Co., Ltd. is a Japanese company that manufactures and sells semiconductor production equipment and measuring instruments, with a market cap of ¥297.64 billion.

Operations: Tokyo Seimitsu Co., Ltd.’s revenue is derived from two main segments: Measuring Equipment, contributing ¥35.16 billion, and Semiconductor Manufacturing Equipment, accounting for ¥107.42 billion.

Dividend Yield: 3.1%

Tokyo Seimitsu’s dividend yield of 3.1% falls short of the top quartile in Japan, but recent increases to JPY 114 per share indicate growth. Despite a history of volatility, dividends are well-covered by earnings (36%) and cash flows (63.6%). The company raised its earnings guidance for fiscal year ending March 2025, with expected net sales and profits showing improvement. However, past dividend reliability remains a concern for investors seeking stable income streams.

• Dive into all 1942 of the Top Dividend Stocks we have identified here.

• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.

• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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 TPEX:4570 TSE:5192 and TSE:7729.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]