Japan’s stock market has undergone a remarkable transformation. After decades of relatively modest returns and limited international attention, Japanese equities have delivered substantial gains, while listed companies are increasingly focused on profitability, capital efficiency, dividends and share buybacks.

The numbers illustrate the scale of the rally. By late October 2026, the broad TOPIX index had gained approximately 22% year-to-date, while the Nikkei 225 was up around 35%. At the same time, semiconductor companies have become some of Japan’s most valuable businesses, challenging traditional giants such as Toyota.

But the changes extend far beyond rising share prices. Corporate governance reforms, tax incentives for Japanese savers and growing participation by foreign investors are reshaping the market.

For American and European investors, Japan also has several unusual characteristics. Shares are generally traded in blocks of 100, daily price increases and declines are restricted by fixed limits, and stock splits have become remarkably common.

This is the third article in DividendJapan’s educational series about investing in Japan, following our earlier coverage of Japan’s standout stocks in 2026 and Japan’s weak yen, aging population and future economic growth.

Key points

• Corporate reform: Abenomics initiated major changes, while the Tokyo Stock Exchange now encourages companies to improve returns on capital and communicate their capital-allocation strategies.

• Dividends and buybacks: Japanese businesses are increasingly returning capital to shareholders through higher dividends and share repurchases.

• Domestic investment: Japan’s expanded NISA program allows eligible residents to invest up to ¥3.6 million annually within a tax-free framework.

• Market diversity: Nearly 3,900 companies are listed across the Tokyo Stock Exchange’s market segments, including smaller businesses active in AI, robotics, semiconductors, drones and software.

• Different trading rules: Foreign investors must account for 100-share trading units, exchange-rate movements, daily price limits, dividend taxes and Japan’s distinctive trading hours.

How Abenomics started Japan’s stock market transformation

The origins of Japan’s changing stock market can be traced back to former Prime Minister Shinzo Abe.

When Abe returned to office in December 2012, Japan had experienced decades of economic stagnation, deflationary pressure and limited wage growth.

His economic program, commonly known as Abenomics, introduced three broad policy initiatives: monetary easing, fiscal stimulus and structural reforms.

One particularly important element was an effort to change how Japanese companies were managed.

For years, many businesses had maintained large cash reserves, extensive cross-shareholdings and relatively conservative policies toward dividends and share repurchases.

Cross-shareholdings are a distinctive feature of Japanese corporate history. Companies often owned shares in customers, suppliers, banks and other business partners to maintain commercial relationships.

Although these arrangements could contribute to business stability, they also tied up capital and sometimes reduced pressure on management to improve shareholder returns.

The reforms initiated during the Abe era encouraged greater transparency, independent directors and more attention to shareholders.

Japan introduced its Corporate Governance Code in 2015 and subsequently revised it several times.

The latest revision, published by the Japan Exchange Group in July 2026, continues this process.

Abenomics did not immediately transform Japanese corporate behavior. Rather, it established a framework that has been developed further over the following decade.

The Tokyo Stock Exchange wants companies to use their capital more efficiently

One of the most important developments occurred in March 2023.

The Tokyo Stock Exchange asked all companies listed on its Prime and Standard markets to implement management policies that explicitly consider the cost of capital and stock price.

The objective is to encourage companies to assess whether their capital generates adequate returns and to explain how they intend to improve corporate value.

Several financial concepts have become particularly relevant.

Return on equity, or ROE, measures profits relative to shareholders’ equity. Return on invested capital, or ROIC, examines operating profitability relative to the capital invested in the business.

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Japan faces a remarkable economic challenge. Its currency has fallen to levels not seen in roughly four decades, government debt remains among the highest in the world, and the population continues to shrink and age. Yet Japanese companies are investing in new technologies, wages are rising, and several industries are experiencing substantial growth.

How can an economy with these characteristics continue to expand? And perhaps more importantly for investors, does Japan’s slow economic growth necessarily mean that Japanese listed companies face the same limitations?

The answer largely comes down to one crucial concept: productivity.

This is the second article in our educational series about investing in Japan, following our recent look at Japan’s standout stocks in 2026.

Key points

• Weak yen: Japan’s policy interest rate has reached 1.25%, its highest level since 1995, but remains well below US and European rates.

• Government debt: Public debt is equivalent to approximately 200% of GDP, complicating Japan’s combination of monetary normalization and expansionary fiscal policy.

• Aging population: Japan has approximately 123 million residents, with almost 30% aged 65 or older.

• Limited economic growth: The OECD forecasts real GDP growth of just 0.6% in 2026 and 0.8% in 2027.

• New growth drivers: Automation, robotics, AI, productivity improvements and internationally operating Japanese companies are central to Japan’s economic outlook.

Why the Japanese yen has fallen so dramatically

One of the defining features of Japan’s economy in recent years has been the persistent weakness of the Japanese yen.

During 2026, the currency fell to its lowest level against the US dollar in approximately 40 years, continuing a prolonged period of depreciation.

The most important structural explanation is the difference between Japanese interest rates and those in other major economies.

Japan maintained exceptionally low interest rates for decades to support an economy characterized by weak inflation, limited domestic demand and slow growth.

Although the Bank of Japan has gradually changed course, interest rates remain comparatively low.

Following another increase in September, the Bank of Japan now maintains a policy rate of 1.25%, its highest level since 1995.

For comparison, the US Federal Reserve raised its target range to 3.75–4.00% in September 2026, while the European Central Bank increased its deposit facility rate to 2.50%.

These differences remain significant, even after Japan’s recent increases.

How the carry trade puts pressure on the yen

A particularly important mechanism behind currency movements is the yen carry trade.

The basic principle is relatively straightforward.

Investors borrow money in a currency with low interest rates, such as the Japanese yen, and invest the proceeds in assets denominated in currencies offering higher yields.

For example, an investor can borrow yen at a relatively low cost, exchange those yen for US dollars and invest in higher-yielding US securities.

As long as the interest-rate difference remains sufficiently large and the exchange rate does not move unfavorably, the strategy can generate a positive return.

However, these transactions also require investors to sell yen to purchase foreign currencies.

Large carry-trade positions can therefore contribute to downward pressure on Japan’s currency.

There is an important additional risk: if the yen suddenly strengthens, investors may rapidly unwind their positions, potentially amplifying exchange-rate movements in the opposite direction.

The yen’s weakness is not explained by interest rates alone. Expectations for future monetary policy, energy prices, international capital flows and concerns about Japan’s fiscal outlook also play a role.

Japan’s enormous government debt complicates monetary policy

Japan’s financial position presents another unusual challenge.

According to the International Monetary Fund’s 2026 assessment, gross government debt is expected to reach approximately 203% of GDP in 2026.

This places Japan among the world’s most heavily indebted major economies.

However, the composition of the debt is important.

Japan issues its government bonds predominantly in its own currency, and domestic financial institutions, pension funds, insurers and the Bank of Japan are major holders.

This differs from countries that rely heavily on borrowing denominated in foreign currencies.

Nevertheless, higher interest rates gradually increase the government’s financing costs as existing debt matures and new bonds are issued.

The Bank of Japan therefore faces a difficult monetary-policy environment. It must manage inflation and price stability while higher borrowing costs affect households, businesses and public finances.

The central bank operates under its own price-stability mandate; limiting government debt costs is not its stated monetary-policy objective.

At the same time, Japan’s government continues pursuing an expansionary economic strategy.

Public policy includes support for strategic investments in semiconductors, artificial intelligence, digital infrastructure, defense capabilities and energy security.

Tax relief measures and subsidies have also been used to cushion households and businesses against higher living costs.

This combination of high public debt, additional government spending and relatively low interest rates contributes to uncertainty surrounding the yen and Japanese government bonds.

It is one reason the OECD has called for a credible medium-term fiscal consolidation plan.

The weak yen is especially expensive for Japanese consumers

A weak currency has very different consequences for exporters and domestic consumers.

Japan relies heavily on imports for energy, agricultural products, raw materials and numerous industrial inputs.

According to Japan’s Agency for Natural Resources and Energy, the country’s energy self-sufficiency ratio was just 16.4% in fiscal 2024.

In other words, Japan relies on external sources for more than 80% of its primary energy requirements under this measure.

Food is another area of significant import dependence.

Japan’s Ministry of Agriculture, Forestry and Fisheries reported a food self-sufficiency ratio of 37% on a calorie basis for fiscal 2025. The ministry publishes further details in its official agricultural reports.

Many imported products, including oil and liquefied natural gas, are priced internationally in US dollars.

When the yen weakens, Japanese importers generally need more yen to purchase the same amount of goods, assuming international prices remain unchanged.

These higher costs can eventually reach consumers through electricity bills, transportation costs, food prices and manufactured goods.

Consequently, a weaker currency can reduce household purchasing power even when nominal wages increase.

This is one of Japan’s main economic challenges: wage increases need to exceed inflation before consumers experience a sustained improvement in real purchasing power.

Export-oriented companies can experience the opposite effect.

Businesses with substantial overseas sales may benefit when foreign-currency earnings are translated back into yen, although imported components and overseas production costs can offset part of that benefit.

For international shareholders, exchange rates introduce a further distinction. A Japanese stock can increase substantially in yen while delivering a smaller return when measured in euros or US dollars.

We previously discussed this in our broader guide to investing in Japan and understanding its risks and opportunities.

Japan’s population is shrinking and aging

The yen and government debt attract much of the financial attention, but Japan’s demographic development may have even greater long-term consequences.

Japan’s population has been declining for years.

According to the latest estimates from Japan’s Statistics Bureau, the population stood at approximately 122.7 million in September 2026, down more than half a million from a year earlier.

At the same time, almost 30% of the population is aged 65 or older.

The working-age population is shrinking, while the number of people requiring healthcare, pensions and elderly-care services remains substantial.

For an economy, this creates several problems.

Fewer working-age residents mean fewer potential employees, a smaller domestic consumer base and increasing pressure on public services.

It also means that maintaining economic growth becomes more difficult if each worker continues producing approximately the same output.

Japan cannot rely on population growth as a major source of economic expansion.

This is reflected in current forecasts.

The OECD’s June 2026 Economic Outlook projects real GDP growth of just 0.6% in 2026 and 0.8% in 2027.

These figures are far below the growth rates associated with many emerging economies.

However, Japan’s changing demographics are also influencing business investment, labor markets and technological development.

Productivity: the key to Japan’s future growth

If the number of workers declines, the economy can still expand when the remaining workforce becomes more productive.

Put simply, Japan must find ways to produce more goods and services with fewer people.

That makes productivity one of the most important economic concepts for understanding Japan’s future.

Labor shortages are already becoming an important driver of investment.

Companies facing difficulties recruiting employees have growing incentives to automate production, streamline logistics, digitize administrative processes and invest in technologies that reduce labor requirements.

Higher wages reinforce this process by increasing the potential financial benefit of automation.

The OECD’s 2026 study of Japanese productivity identifies significant opportunities for improvement.

Productivity per hour worked in Japan remains below the OECD average. Between 2019 and 2024, hourly productivity grew by approximately 0.3% annually, according to the organization.

This demonstrates that Japan’s technological reputation does not automatically translate into high productivity throughout the entire economy.

While major manufacturing companies often operate highly automated production facilities, many smaller businesses and service-sector organizations have been slower to adopt advanced digital technologies.

Modernization therefore extends beyond installing industrial robots.

It also involves enterprise software, cloud systems, artificial intelligence, more efficient business processes and better allocation of capital.

Automation and robotics: where aging creates demand

For certain Japanese industries, population aging can actually create a structural source of demand.

The most obvious examples are factory automation, industrial robotics, sensors, precision motion control and automated logistics.

Several Japanese listed companies are active in these markets.

Keyence (TSE: 6861) develops industrial sensors, inspection systems and measurement equipment used to automate manufacturing processes. Lesser known Keyence actually is one of the biggest companies in Japan with a current market cap of $125 billion. The stock is trading near its all time high at 81.410 yen.

FANUC (TSE: 6954) is one of Japan’s major industrial robotics manufacturers, supplying robots and computerized numerical-control systems to customers worldwide.

Yaskawa Electric (TSE: 6506) manufactures industrial robots, servo motors, motion-control systems and related automation equipment.

Another specialist is Harmonic Drive Systems (TSE: 6324), which produces precision reduction gears used in robots and motion-control applications.

These components allow robotic joints and industrial machinery to move accurately and repeatedly.

DividendJapan previously examined both companies in our article about Harmonic Drive, FANUC and the emerging humanoid robotics market.

The relevance of these technologies extends beyond Japanese factories.

Labor shortages are affecting many developed economies, including countries in Europe and North America.

Consequently, Japanese manufacturers of automation equipment can serve both domestic and international markets.

This creates a distinction between Japan’s demographic problems and the commercial outlook of individual Japanese technology suppliers.

Not every automation company will necessarily experience higher profits, but the demand drivers are identifiable: labor availability, production efficiency, operating costs and investment in new manufacturing capacity.

More women, older employees and foreign workers

Automation is only part of the response to population decline.

Japan is also trying to make better use of its existing labor force.

Female employment has increased substantially over the past decade, while more older Japanese residents are remaining economically active beyond traditional retirement ages.

Foreign workers are another increasingly important component of the labor market.

According to the OECD Employment Outlook 2026, the employment rate for Japanese women aged 15–64 reached 75.7% in the first quarter of 2026.

The OECD nevertheless identifies considerable scope for additional improvements, particularly through better childcare arrangements, more flexible employment practices and increased access to regular employment.

Older workers also play an important role.

Extending working lives can help offset the decline in the traditional working-age population, although this requires attention to training, working conditions and productivity.

Meanwhile, immigration and foreign-worker programs can partly ease shortages in sectors such as manufacturing, construction, healthcare and services.

These measures will not completely reverse Japan’s demographic decline. However, they can reduce pressure on the labor market and support economic activity.

Government investment in AI, semiconductors and energy

Japan’s government is also attempting to develop additional sources of economic growth through investment in strategic industries.

Semiconductors and artificial intelligence have become central parts of this strategy.

The Ministry of Economy, Trade and Industry (METI) is supporting new production capacity, computing infrastructure, research and development, and technological innovation.

One example is the government’s GENIAC program, which supports Japanese developers of generative AI models.

In May 2026, METI announced additional support for AI-ready manufacturing data and robotics foundation models.

The ministry explicitly connected these initiatives to Japan’s declining population and structural labor shortages.

Investment is also directed toward advanced semiconductors, quantum technology, economic security and the energy transition.

In its 2026 industrial-policy report, METI emphasized technological competitiveness, international expansion and investment-led growth.

Energy security is another important consideration.

Increasing domestic energy production through renewables, nuclear power and other technologies could gradually reduce Japan’s dependence on imported fossil fuels.

However, these initiatives require substantial capital and their economic effects will develop over time.

Government support alone does not guarantee the commercial success of individual projects or companies.

Why Japanese stocks can grow faster than Japan’s economy

There is one distinction that is particularly important when examining the Tokyo Stock Exchange.

Japan’s economy does not need to grow rapidly for Japanese listed companies to generate substantial revenue and profit growth.

Many of the country’s largest businesses operate globally and derive significant portions of their revenue from customers outside Japan.

Consider several familiar examples.

Tokyo Electron (TSE: 8035) manufactures semiconductor production equipment used by chipmakers around the world.

Toyota Motor (TSE: 7203) sells vehicles internationally, while Sony Group (TSE: 6758) operates across entertainment, gaming, image sensors and other global markets.

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Japan’s stock market is home to some extraordinary companies, many of which remain relatively unfamiliar to international investors. In 2026, a loss-making drone manufacturer has delivered one of the country’s biggest share-price gains, semiconductor stocks have reached remarkable valuations, and established businesses have continued returning billions to shareholders through dividends and buybacks.

From artificial intelligence and industrial automation to insurance, sportswear and international trading, Japan offers a much broader range of listed companies than the familiar names in the automotive and electronics industries might suggest.

This is the first in a series of DividendJapan articles exploring the Japanese stock market, the companies behind its recent performance and the characteristics that make investing in Japan different from investing in Europe or the United States.

Key points

• Terra Drone: One of Japan’s biggest stock-market winners in 2026, with a gain of approximately 850% by late September, despite continuing losses.

• Warren Buffett: Berkshire Hathaway owns major positions in Japan’s five leading trading houses and acquired a 2.5% stake in Tokio Marine in 2026.

• AI and semiconductors: Kioxia and Fujikura illustrate how Japanese companies are benefiting from demand for data storage and AI infrastructure.

• Dividend growth: Fujikura increased its dividend by 125% for the financial year ended March 2026, while Kao has raised its annual dividend for 36 consecutive years.

• Hidden giants: Keyence and Murata Manufacturing are two major Japanese technology companies that many international investors may not immediately recognize.

Terra Drone: an 850% rally without a profit

One of the most remarkable stories on the Tokyo Stock Exchange this year is Terra Drone (TSE: 278A).

By late September, the company’s shares had gained approximately 850% in 2026, making it the biggest Japanese stock-market winner in our database at that point. Terra Drone’s market capitalization had climbed to well over $1 billion, even though the business was still reporting losses.

The company’s activities extend far beyond conventional commercial drones. Terra Drone provides industrial inspection, surveying and mapping services, while increasingly developing technology for defense applications.

One particularly notable development is its range of interceptor drones, designed to destroy hostile unmanned aircraft. In June, the company announced successful tests against Shahed-type drones.

That expansion into defense technology has given investors a very different way of looking at the company compared with its original industrial-drone activities.

The contrast between the share-price performance and the company’s financial results is important, however. An 850% increase in the share price does not mean revenue or profits have risen by anything close to the same percentage.

Terra Drone also completed a 2-for-1 stock split at the end of September, following its extraordinary rally. We previously examined the company’s business in more detail in our article on Japan’s listed drone manufacturers.

Keyence and Murata: two Japanese technology giants

Not every major Japanese technology company attracts the same international attention as Sony, Nintendo or Toyota.

Two examples are Keyence (TSE: 6861) and Murata Manufacturing (TSE: 6981), companies with market capitalizations running into tens of billions of dollars.

Keyence is one of the world’s leading specialists in factory automation and industrial inspection. It develops sensors, machine-vision systems, measuring instruments, microscopes and other equipment used to automate manufacturing processes and monitor product quality.

These technologies are used across industries ranging from automotive manufacturing and electronics to pharmaceuticals and food production.

Murata Manufacturing operates in a different part of the technology market. The company produces electronic components and is a global leader in multilayer ceramic capacitors, better known as MLCCs.

These miniature components store and release electrical energy and help regulate electrical circuits. They are essential in smartphones, computers, cars, industrial machinery and countless other electronic devices.

According to Murata’s own company information, its global market share in ceramic capacitors is approximately 40%.

Both companies illustrate an important characteristic of the Japanese market: some of its largest businesses are suppliers of components, equipment and technologies that consumers rarely encounter directly, despite their widespread use in products manufactured worldwide.

Why Warren Buffett invested billions in Japan’s trading houses

Another distinctive feature of the Japanese market is the presence of the enormous diversified trading companies known as sogo shosha.

These businesses are much more than traditional importers and exporters. They operate worldwide, investing in energy, commodities, food, retail, infrastructure, logistics and numerous industrial activities.

In many respects, they function as diversified engines of the Japanese economy, connecting Japanese businesses with international suppliers, customers and investment opportunities.

The five largest names are Mitsubishi Corporation, Mitsui & Co., Itochu Corporation, Marubeni Corporation and Sumitomo Corporation.

Warren Buffett began building Berkshire Hathaway’s positions in these companies years ago, attracted in part by their diversified operations, cash generation and approach to shareholder returns.

The scale of Berkshire’s investment has since become substantial.

According to Berkshire Hathaway’s 2025 annual report, its five Japanese trading-house positions were worth a combined $35.4 billion at the end of 2025. They generated approximately $862 million in dividends during that year.

Berkshire’s stakes in the individual companies ranged from 9.7% to 10.8%.

A smaller trading company worth mentioning is Toyota Tsusho (TSE: 8015), which has also experienced a substantial share-price increase in recent years.

Toyota Tsusho operates internationally across automotive-related activities, metals, machinery, energy, chemicals and other businesses. It has particularly close connections with the Toyota group.

Its dividend development provides another example of changing shareholder-return policies in Japan.

On a split-adjusted basis, Toyota Tsusho’s annual dividend increased from ¥53.33 for the financial year ended March 2022 to ¥120 for March 2026. The company currently forecasts ¥125 for March 2027.

That represents more than a doubling over four completed financial years.

Toyota Tsusho has also introduced a progressive dividend policy and targets a total shareholder-return ratio of at least 40%, including share repurchases, under its current medium-term framework.

These figures are available in the company’s official shareholder information.

Tokio Marine: Berkshire’s new insurance investment

Berkshire Hathaway’s interest in Japanese companies is no longer limited to the major trading houses.

In March 2026, its insurance subsidiary National Indemnity agreed to acquire a 2.5% stake in Tokio Marine Holdings (TSE: 8766).

As previously reported by DividendJapan, the investment represented a significant expansion of Berkshire’s Japanese equity exposure.

Tokio Marine is one of Japan’s largest insurance groups, operating internationally in property and casualty insurance, life insurance and reinsurance.

It also has an extensive history of returning capital to shareholders.

Over the past five years, annual dividend growth has averaged approximately 23%, based on our earlier company analysis. Recent shareholder-return programs have also included substantial share repurchases.

At a recent market price, the dividend yield was around 3%.

Tokio Marine was also responsible for one of the most unusual corporate actions of 2026: a 15-for-1 stock split at the end of September.

A share trading around ¥8,000 before the split would have an equivalent theoretical price of roughly ¥533 afterward.

The large split ratio substantially reduced the amount of money needed to acquire the standard trading lot of 100 shares on the Tokyo Stock Exchange.

Importantly, a split does not change the economic value of the company or an existing investor’s holding. The number of shares increases, while the price and dividend per share are adjusted proportionally.

We examined the transaction and dividend implications in our recent article, Tokio Marine’s stock split and dividend growth.

Kioxia: one of Japan’s biggest AI success stories

Few Japanese semiconductor stocks have attracted as much attention in recent years as Kioxia Holdings (TSE: 285A).

The company specializes in NAND flash memory, the technology used to store data in smartphones, solid-state drives, enterprise storage systems and data centers.

The expansion of AI infrastructure has increased attention on memory and storage technology. Although powerful processors perform AI calculations, enormous quantities of data also need to be stored and accessed efficiently.

Kioxia is particularly exposed to the storage side of this market.

There is an important distinction between Kioxia and American memory-chip manufacturer Micron Technology.

Kioxia focuses on NAND flash memory, which retains information without a continuous power supply. Micron manufactures both NAND and DRAM, with DRAM primarily serving as high-speed working memory.

Following an extraordinary share-price rally, Kioxia’s market capitalization approached $180 billion in early October 2026, placing it among Japan’s largest listed companies.

The company also executed a 3-for-1 stock split at the end of September, making its shares more accessible to Japanese retail investors.

Unlike many of the other companies discussed here, Kioxia does not currently pay a dividend. Its stock-market performance is therefore a story about business growth, industry expectations and valuation rather than income generation.

DividendJapan first highlighted the company in 2025 and subsequently revisited its performance in our article Kioxia: Japan’s best-performing semiconductor stock in 2025.

Further information on the underlying business is available from Kioxia Holdings.

Fujikura: extraordinary AI growth and a 125% dividend increase

Another company that deserves particular attention is Fujikura (TSE: 5803), one of Japan’s biggest stock-market success stories of recent years.

Fujikura manufactures cables, optical fibers, connectors and other electronic and telecommunications components.

Its growing exposure to data centers and AI infrastructure has become a major driver of its business.

As AI systems require increasingly powerful computing networks, demand for high-speed connections between servers and data centers has increased substantially. Fujikura supplies important parts of that underlying infrastructure.

The company’s share-price performance has been extraordinary.

Fujikura gained 504% in 2024 and another 174% in 2025. By late September 2026, the stock had added approximately 86% since the beginning of the year.

Taken together, these gains have transformed Fujikura into a company with a market capitalization exceeding $50 billion.

A significant proportion of its business is connected to North America, which accounts for close to half of group revenue.

The financial outlook also changed substantially during 2026.

Following its first-quarter results in August, Fujikura raised its full-year revenue forecast for the financial year ending March 2027 to ¥1.755 trillion, an increase of 48.4% compared with the previous year.

The company expects operating profit to increase even faster, benefiting from expanding demand for optical components used in data centers.

Fujikura’s remarkable dividend growth

Fujikura’s dividend history is almost as striking as its share-price performance.

For the financial year ended March 2026, the company increased its annual dividend from ¥100 to ¥225 per share, an increase of 125%.

Fujikura implemented a 6-for-1 stock split effective April 1, 2026. On a post-split basis, the annual dividend therefore increased from approximately ¥16.67 to ¥37.50.

That represents an exceptionally rapid increase in shareholder distributions over a relatively short period.

However, it is important to distinguish between the dividend already paid for the previous financial year and the dividend currently forecast for the new one.

For the financial year ending March 2027, Fujikura’s published dividend forecast is ¥38 per share, consisting of two expected payments of ¥19.

Compared with the previous year’s split-adjusted dividend of ¥37.50, this would represent an increase of only 1.3%.

This is an important reminder that exceptionally high historical dividend growth does not automatically continue at the same pace.

At a share price around ¥5,413, Fujikura’s projected annual dividend of ¥38 translates into a yield of approximately 0.7%. Using the company’s projected earnings per share of ¥196.88, the forward price-to-earnings ratio would be approximately 27.5.

Fujikura has attracted comparisons with American connectivity specialist Amphenol, another company benefiting from investment in AI-related infrastructure.

An unusual feature of Japanese dividends

Fujikura also provides a useful example of how dividend announcements can work in Japan.

The company distributes dividends twice a year, with record dates on March 31 and September 30.

For the September 2026 interim dividend, shares traded ex-dividend on September 29. However, the ¥19 payment was still a forecast, rather than a finally approved dividend, at that point.

Japanese companies can announce estimated dividends in advance and confirm the actual amount later.

Consequently, investors may encounter an ex-dividend date before the final payment has been formally determined.

In Fujikura’s case, interim dividends are generally paid in December, while year-end dividends are paid in June.

DividendJapan previously covered the company’s 6-for-1 stock split and record dividend growth. Additional details can be found in Fujikura’s official investor-relations section and its shareholder-return information.

ASICS and Kao: two very different dividend stories

Japan’s stock-market successes are not limited to semiconductors, industrial technology and financial companies.

ASICS (TSE: 7936) is an interesting example from the consumer sector.

The sportswear and running-shoe manufacturer has expanded substantially outside Japan, with international markets accounting for more than 80% of sales.

ASICS has recorded double-digit sales growth in recent years, supported by demand for its performance running shoes and the development of its international business.

In contrast with the difficulties experienced by several established international sportswear competitors, ASICS shares have performed well and were trading near their historical highs in the recent market snapshot.

At approximately ¥4,450 per share, the company had a market capitalization approaching $20 billion, a forward earnings multiple of around 25 and a dividend yield of approximately 0.8%.

ASICS has also increased shareholder distributions and announced further share-repurchase programs in 2026.

The latest official announcements can be found on its investor-relations website.

At the other end of the dividend spectrum is Kao Corporation (TSE: 4452).

Kao is one of Japan’s most established consumer-products groups, manufacturing household goods, personal-care products, cosmetics and hair-care products.

Its international brands include John Frieda, Guhl and Goldwell.

What makes Kao particularly notable is its dividend history.

The company has increased its annual dividend for 36 consecutive years through 2025, giving it one of the longest dividend-growth records among Japanese listed companies.

Kao expects to extend that streak further in 2026.

Yet its recent share-price performance and dividend growth have been relatively modest compared with the exceptional increases reported by companies such as Fujikura.

Kao therefore offers an entirely different example of dividend investing in Japan: a long and consistent dividend history, but a much slower recent growth rate.

The latest distribution figures are available on Kao’s official shareholder-return page.

What these companies reveal about investing in Japan

The examples above illustrate just how diverse Japan’s stock market has become.

On one side are high-growth businesses such as Terra Drone, Kioxia and Fujikura, whose share prices have risen dramatically as investors reassess their growth prospects.

On another are established international businesses such as Keyence, Murata and ASICS, which participate in major global markets without necessarily being household names outside Japan.

Then there are the diversified trading houses and insurers favored by Berkshire Hathaway, where dividends, cash generation and capital returns play a central role.

Finally, companies such as Kao demonstrate that Japan also has a substantial group of businesses with exceptionally long dividend histories, even when recent earnings or dividend growth is limited.

These differences matter when comparing Japanese shares.

A spectacular share-price increase is not necessarily accompanied by similar revenue or earnings growth. A high dividend yield does not automatically indicate a rapidly growing dividend, while a company with decades of consecutive increases may currently be raising its distribution by only a small percentage.

Corporate actions also require attention. Japan’s numerous stock splits can significantly reduce the price per share and the cost of buying a standard 100-share trading lot, without changing the value of the underlying business.

Dividend histories, earnings figures and valuations should therefore be compared on a split-adjusted basis.

For international investors, the yen introduces another consideration: investment returns measured in euros or dollars can differ substantially from returns measured in Japanese currency.

These are among the characteristics we will explore in more detail in our upcoming educational articles about investing in Japan.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Tokio Marine (TSE:8766): 15-for-1 Split Opens the Stock to Smaller Investors

Japan’s insurance giant combines a much lower entry price with rapid dividend growth, large buybacks and Berkshire Hathaway as a strategic shareholder

Introduction

Tokio Marine Holdings (TSE:8766) has completed an enormous 15-for-1 stock split, reducing its share price mechanically from around ¥8,000 to roughly ¥533. The split does not change the value of an investor’s holding, but it dramatically changes accessibility: because Japanese stocks are normally traded in lots of 100 shares, the minimum investment falls from roughly ¥800,000 to just ¥53,300. Meanwhile, Tokio Marine continues to combine a dividend yield of around 2.9% with rapid dividend growth, regular share buybacks and a new strategic partnership with Berkshire Hathaway.

Key Points

• 15-for-1 stock split cuts the minimum 100-share investment to around ¥53,300

• Dividend increased 27% last year, with three-year average growth also around 27%

• Berkshire Hathaway acquired an initial 2.5% stake through National Indemnity

• Shares are up more than 30% in 2026, with a market cap around ¥14.8 trillion (~$93bn)

Company Overview

Founded in 1879, Tokio Marine became Japan’s first non-life insurance company and started underwriting business in London, Paris and New York as early as 1880. Today, the group employs more than 50,000 people and operates across Japan and international markets in non-life insurance, life insurance and a broad range of specialty insurance and risk-management businesses.

Tokio Marine Holdings (TSE:8766) currently has a market capitalization of approximately ¥14.8 trillion, equivalent to roughly $93 billion, making it one of Japan’s largest listed financial companies.

A Massive 15-for-1 Stock Split

The most striking recent development is Tokio Marine’s 15-for-1 stock split, by far the largest split among the 43 Japanese companies carrying out stock splits around the end of September.

For every old Tokio Marine share, investors now own 15 shares. A share price of around ¥8,000 therefore becomes approximately ¥533 on a split-adjusted basis. Tokio Marine itself confirmed the 15-for-1 ratio in its investor information.

That matters particularly in Japan because the standard trading unit is 100 shares. Before the split, buying a standard lot at ¥8,000 required approximately ¥800,000. At ¥533, the same standard lot requires only around ¥53,300.

For smaller Japanese investors, that substantially lowers the amount of capital needed to add Tokio Marine to a diversified portfolio. It also helps explain why unusually large stock splits can be more consequential in Japan than in markets where investors routinely buy individual or fractional shares.

Berkshire Hathaway Becomes a Shareholder

The split follows another major development earlier in 2026. Berkshire Hathaway, through its core reinsurance subsidiary National Indemnity, made an initial strategic investment representing approximately 2.5% of Tokio Marine’s outstanding shares.

The transaction was completed in April at ¥5,962 per pre-split share and totaled approximately ¥287.4 billion. The partnership extends beyond the equity investment: Tokio Marine and Berkshire are also collaborating in reinsuran

ce and potential M&A opportunities. Berkshire cannot increase its ownership beyond 9.9% without prior approval from Tokio Marine’s board.

Tokio Marine simultaneously launched share repurchases designed to offset dilution from the shares issued to Berkshire. The insurer separately announced plans for up to ¥400 billion of additional FY2026 buybacks, excluding the Berkshire-related repurchase.

Dividend

Dividend growth remains one of the most notable parts of the Tokio Marine story.

The FY2025 dividend increased from ¥172 to ¥218 per pre-split share, an increase of approximately 27%. That follows several years of rapid increases: Tokio Marine paid ¥100 in FY2022, ¥123 in FY2023 and ¥172 in FY2024. The company explicitly states that dividends are the basis of shareholder returns and that its policy is to increase them continuously in line with profit growth.

On a 15-for-1 split-adjusted basis, the FY2025 dividend equals approximately ¥14.53 per share. At the current share price, the trailing dividend yield is close to 3%.

Importantly, FY2025 is not an isolated increase. Tokio Marine’s dividend growth has averaged roughly 27% annually over the last three years, while the company’s official FY2026 forecast before the split was ¥245 per share, equivalent to approximately ¥16.33 after the split.

Share buybacks add another component to shareholder returns. Over the past four years, Tokio Marine has retired or repurchased roughly 2% of its outstanding shares per year on average, while the current FY2026 program is substantially larger.

Financial Performance & Fundamentals

Tokio Marine’s share price has risen strongly alongside its dividend. The stock has gained more than 30% in 2026 and has produced substantial gains over the preceding five years as well.

Despite that performance, the shares trade at an estimated P/E of around 15, based on current earnings forecasts. Tokio Marine’s official figures also show adjusted ROE of 22.0% for FY2025, while its Economic Solvency Ratio stood at 268% at the end of March 2026, above the group’s target of at least 190%.

P/E 2026E: ~15x
Dividend yield: ~2.9%
FY2025 dividend growth: ~27%
Three-year dividend growth: ~27% p.a.
Market cap: ~¥14.8tn / $93bn
2026 share-price performance: >+30%

Analyst View

Analyst sentiment remains strongly positive, with 3 Strong Buy, 9 Buy and 3 Hold ratings, and no Sell recommendations.

Tokio Marine’s rapid share-price appreciation means valuation has increased, but the estimated P/E remains around 15. The combination of the split, dividend growth and buybacks also means investors are now looking at very different per-share figures than before October, even though the underlying economics of the company were unchanged by the split itself.

Summary

Tokio Marine Holdings (TSE:8766) enters the final months of 2026 with one of the most dramatic stock splits seen in Japan this year. The 15-for-1 split reduces the minimum cost of a standard 100-share lot from roughly ¥800,000 to around ¥53,300, making the stock substantially more accessible to smaller investors.

At the same time, the underlying shareholder-return story remains notable. The dividend increased approximately 27% last year, the three-year dividend growth rate is around 27% annually, the yield is close to 3%, and Tokio Marine continues to deploy significant capital through share repurchases. Berkshire Hathaway’s 2.5% strategic investment adds another important development to the company’s 2026 story.

At around 15 times estimated earnings, Tokio Marine combines a much lower post-split share price with rapid dividend growth and substantial capital returns. The stock split itself creates no economic value, but it fundamentally changes the amount of capital Japanese retail investors need to own a standard trading lot.

On your final question — would I buy it like Buffett? — I’d keep that out of the Dividend Japan article because your format is deliberately factual rather than advisory. The relevant facts for that decision are now clearly laid out: ~15x estimated earnings, ~2.9% yield, very high recent dividend growth, substantial buybacks, strong recent share-price performance and Berkshire’s 2.5% strategic stake.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Japan is about to see another extraordinary wave of stock splits. No fewer than 53 Tokyo-listed companies will adjust their shares at the end of September, including some of Japan’s biggest and best-known companies. Among them are Tokyo Electron, Kioxia Holdings, Tokio Marine Holdings, Sumitomo Mitsui Financial Group, Daiwa House and Terra Drone. The official JPX schedule confirms that the allotments take place at the end of September 2026.

For Japanese investors, this matters more than it might in the U.S. or Europe. Tokyo-listed shares are generally traded in lots of 100 shares, meaning a stock trading at ¥50,000 requires roughly ¥5 million just to purchase a standard lot. Splitting expensive shares can therefore substantially lower the amount of money needed to establish a position.

Key points

• 53 Japanese companies are carrying out stock splits at the end of September.

• Tokio Marine (TSE: 8766) has the largest split among the major names at 15-for-1.

• Tokyo Electron (TSE: 8035) executes a 5-for-1 split after its spectacular share-price rally.

• Kioxia (TSE: 285A) splits 3-for-1, bringing its recent ¥55,780 price to roughly ¥18,593 on a split-adjusted basis.

• Terra Drone (TSE: 278A) splits 2-for-1 after gaining an incredible 851% in 2026.

• Mitsui Kinzoku and Hokuhoku Financial Group are conducting 10-for-1 splits.

• Every company on the JPX list currently has a standard trading unit of 100 shares.

Japan’s stock-split boom continues

This isn’t the first time we have written about Japan’s unusually high number of stock splits.

At the end of March 2025, nearly 50 Japanese companies split their shares. In the first quarter of 2026, that number had already climbed above 60. DividendJapan highlighted Fujikura’s 6-for-1 split earlier this year after the semiconductor-related stock subsequently continued to set new records.

Even the final trading day of 2025 produced more than 30 splits, including major companies such as SoftBank, Itochu and Bridgestone.

Now another 53 companies are joining the list at the end of September.

The scale is remarkable, but there is a logical reason behind it. A stock split doesn’t change a company’s underlying market capitalization or the economic value of an investor’s holding. It simply divides the same ownership into a larger number of shares at a proportionally lower price.

In Japan, however, that lower nominal price can have a particularly practical effect because of the standard 100-share trading unit.

Tokyo Electron finally becomes much more accessible

One of the standout names is Tokyo Electron (TSE: 8035), which is carrying out a 5-for-1 stock split.

This is especially relevant because we recently highlighted exactly this problem in our article Tokyo Electron nears record high as AI demand drives growth expectations.

Tokyo Electron had climbed to around ¥68,000 by June after trading near ¥20,000 in September 2025. At ¥68,000, purchasing the standard 100-share lot would require approximately ¥6.8 million.

A 5-for-1 split takes a ¥68,000 share price to an equivalent ¥13,600, reducing the capital needed for 100 shares from ¥6.8 million to roughly ¥1.36 million.

Nothing changes about the value of the company because of the split itself, but the difference for smaller investors is substantial.

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Tokyo Electron has been one of the major beneficiaries of the semiconductor and AI investment boom. As we recently wrote, the company competes with U.S. semiconductor-equipment giants including Applied Materials, Lam Research and KLA. Its shares had gained dramatically before the split.

Kioxia goes 3-for-1 after an extraordinary rally

Then there is Kioxia Holdings (TSE: 285A).

Kioxia is executing a 3-for-1 stock split. At the recent price of ¥55,780, that translates into a theoretical split-adjusted price of approximately ¥18,593.

DividendJapan readers will know Kioxia very well.

We first highlighted the semiconductor company in 2025 when shares were around ¥3,500. We subsequently returned to the stock several times as it became one of Japan’s most spectacular semiconductor performers. Our original Kioxia article

By October 2025, the stock had already risen about 150% from our original article, prompting another update: Kioxia – Japan’s best-performing semiconductor stock in 2025.

And Kioxia hasn’t stopped there. In 2026 the stock has gained another 434.5% based on our latest figures.

The 3-for-1 split therefore arrives after an extraordinary appreciation in the nominal share price.

Terra Drone splits after an 851% explosion

Another familiar DividendJapan name is Terra Drone (TSE: 278A).

Terra Drone will conduct a 2-for-1 split, cutting its recent ¥19,530 share price to a theoretical ¥9,765.

We first wrote extensively about Terra Drone and Japan’s listed drone industry when the company was still a much smaller stock.

What happened subsequently has been extraordinary: Terra Drone is now up approximately 851% in 2026, making it the best-performing Japanese stock in our current database.

The stock-market performance is even more remarkable considering that Terra Drone remains loss-making and its underlying revenue growth is nowhere near its share-price appreciation.

The split will at least bring the nominal share price back below ¥10,000, significantly lowering the cost of a standard 100-share position.

Tokio Marine goes even further: 15-for-1

Perhaps the most eye-catching split of the entire group comes from Tokio Marine Holdings (TSE: 8766).

Japan’s insurance giant is carrying out an enormous 15-for-1 split — the largest ratio on the September list supplied.

Tokio Marine is another company DividendJapan has followed closely. Earlier this year, the stock surged after Berkshire Hathaway’s National Indemnity agreed to take a 2.5% stake worth approximately $1.8 billion.

At the time, we also highlighted Tokio Marine’s impressive dividend record, including double-digit dividend growth. Tokio Marine Holdings is a dividend growth machine

The 15-for-1 split is considerably larger than the ratios chosen by most other companies this month.

Banks, semiconductors and industrial companies join in

The September list is unusually broad.

Sumitomo Mitsui Financial Group (TSE: 8316) is carrying out a 2-for-1 split, while several regional banks are going much further. Akita Bank, Yamanashi Chuo Bank and Awa Bank are each splitting 5-for-1, while Hokuhoku Financial Group is going 10-for-1.

The technology and semiconductor supply chain is also strongly represented.

Besides Tokyo Electron and Kioxia, IBIDEN (TSE: 4062) goes 2-for-1, Organo (TSE: 6368) goes 5-for-1 and Tera Probe (TSE: 6627) also splits 5-for-1.

Other recognizable names include Daiwa House Industry with a 2-for-1 split, Isetan Mitsukoshi Holdings at 2-for-1, Niterra at 2-for-1 and TOPPAN Holdings at 2-for-1.

Two companies besides Tokio Marine stand out for particularly large ratios: Mitsui Kinzoku and Hokuhoku Financial Group both execute 10-for-1 splits.

The complete official list is available from the Japan Exchange Group (JPX).

A welcome development for Japanese investors

The sheer number of stock splits has become one of the more distinctive developments in Japan’s equity market.

For international investors accustomed to buying a single share, Japan’s 100-share trading units can still be frustrating. A ¥50,000 stock effectively creates a ¥5 million threshold for purchasing a normal lot.

Tokyo Electron is a perfect illustration. Its rally from around ¥20,000 to roughly ¥68,000 made the stock dramatically more expensive to access even though the underlying investment case had not changed simply because the nominal share price increased.

The same applies to Kioxia and, after its enormous rally, Terra Drone.

A stock split doesn’t make any of these companies fundamentally cheaper. Valuations, earnings, dividends and market capitalizations are unchanged immediately after a split. But it does make the shares far more accessible, and with 53 companies taking action at the end of September alone, Japanese companies are clearly continuing to address the country’s unusually high minimum investment amounts.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Japan’s two biggest stock winners of 2026 have delivered extraordinary returns, but their fundamentals and valuations tell very different stories.

Even Kioxia Holdings (TSE: 285A) has been left behind by Japan’s two biggest stock-market winners of 2026. Kioxia has gained an extraordinary 434.5% year-to-date, but Terra Drone (TSE: 278A) has surged 851%, while QD Laser (TSE: 6613) is up 603.4%.

We have written about Terra Drone before on DividendJapan.com, and the latest numbers make the rally even more remarkable. Terra Drone is still loss-making and its revenue is growing at a relatively modest pace, while QD Laser is profitable but trades at more than 200 times estimated earnings. Below we take a closer look at the two stocks that have managed to outperform even Kioxia this year.

Key Points

• Terra Drone (TSE: 278A) is up 851% YTD, making it the best-performing Japanese stock in our database.

• QD Laser (TSE: 6613) has gained 603.4% in 2026.

• Kioxia (TSE: 285A) is up 434.5%, putting it a distant third behind the two smaller companies.

• Terra Drone remains loss-making and trades at roughly 40 times sales.

• QD Laser is profitable, but its estimated FY2027 P/E is above 200.

• Neither Terra Drone nor QD Laser currently pays a dividend.

Terra Drone: an extraordinary 851% gain

Terra Drone (TSE: 278A) is now up an almost unbelievable 851% in 2026, putting it well ahead of every other Japanese stock in our database.

The company provides drone-based services and technology for applications including surveying and infrastructure inspection. Terra Drone also develops unmanned aircraft traffic-management technology as drone usage and advanced air mobility expand.

Its market capitalization has now reached approximately ¥210 billion, equivalent to around $1.3 billion, based on the figures supplied.

The remarkable part is that Terra Drone’s underlying financial growth has been nowhere near the 851% increase in its share price.

For the six months ended July 31, 2026, results released on September 14 showed revenue of ¥2.24 billion, up 15.1% from ¥1.94 billion a year earlier.

The losses, however, increased.

Operating loss widened from ¥681 million to ¥819 million, recurring loss increased from ¥541 million to ¥695 million, and the net loss grew from ¥394 million to ¥680 million. EPS deteriorated from a loss of ¥41.61 to a loss of ¥69.26 per share.

For the full fiscal year ending January 31, 2027, Terra Drone forecasts:

• Revenue of ¥5.07 billion, up 6.1%

• Operating loss of ¥1.66 billion

• Recurring loss of ¥1.42 billion

• Net loss of ¥1.27 billion

• EPS of -¥131.88

• Dividend of ¥0

The earlier analyst figure of approximately ¥5.3 billion in revenue would represent growth of roughly 10.8%. So to clarify the units: Terra Drone generates revenue in the billions of yen, not trillions.

Growth is expected to accelerate, but gradually

Revenue growth is expected to pick up over the next few years. Based on the estimates supplied, however, analysts are not expecting annual revenue growth to move much beyond 20% even toward FY2029.

That makes the current valuation particularly striking.

At a share price of ¥19,530, Terra Drone trades at approximately 40 times sales. Because the company continues to report losses, there is no meaningful P/E ratio.

There is also no analyst consensus for Terra Drone: according to the data supplied, no analysts currently provide a formal rating on the stock.

And despite the enormous share-price gain, there is still no dividend.

Terra Drone stock split takes effect

One important event takes place overnight. Terra Drone has an ex-date of September 29 for its stock split, which will reduce the nominal share price from the current ¥19,530 to below ¥10,000 on a split-adjusted basis.

This is part of a much broader development in Japan. At the end of September, no fewer than 53 Japanese companies are conducting stock splits.

That is relevant because Japanese shares are generally traded in 100-share units. At ¥19,530, a standard Terra Drone trading unit represents almost ¥2 million. Lower nominal prices following stock splits make these shares accessible with considerably less capital.

We will look at this remarkable wave of Japanese stock splits separately.

QD Laser: +603% with a very different financial profile

The number-two performer is QD Laser (TSE: 6613).

QD Laser has gained 603.4% in 2026, another extraordinary return, although it remains well behind Terra Drone’s 851%.

The company was established in 2006 and grew out of semiconductor-laser technology developed at Fujitsu Laboratories. QD Laser listed in Tokyo in 2021 and develops semiconductor lasers and related optical technologies, including quantum-dot laser technology.

Its products and technology have applications in fields including communications, data centers and other advanced optical applications. QD Laser also develops retinal-projection technology.

The company is considerably smaller than Kioxia and currently has a market capitalization of approximately ¥92 billion, or $586 million.

QD Laser is profitable, but valuation has exploded

Financially, QD Laser differs substantially from Terra Drone because QD Laser is profitable.

Revenue development had been relatively modest in recent years, generally running at approximately 4% to 7–8% annually.

Analysts now expect a significant acceleration.

For FY2027, which ends in March 2027, analyst consensus points to revenue growth of more than 33%. Double-digit revenue growth is also expected in subsequent years.

QD Laser furthermore has a strong balance sheet, with more cash than debt.

The enormous stock rally has nevertheless pushed its valuation to an exceptional level. Based on estimated FY2027 earnings, QD Laser now trades at a P/E ratio above 200.

Like Terra Drone, QD Laser does not pay a dividend.

And then there is Kioxia

Putting the numbers next to each other shows just how unusual 2026 has been:

Terra Drone (TSE: 278A): +851%
QD Laser (TSE: 6613): +603.4%
Kioxia Holdings (TSE: 285A): +434.5%

A gain of more than 400% would normally make Kioxia one of the unquestioned stars of the Japanese market. This year, it isn’t even close to the top two.

Kioxia is also undergoing a stock split overnight. Its 1-for-3 split means that the current ¥55,780 share price will become a little over ¥18,000 per share on a split-adjusted basis.

The three stocks nevertheless represent very different businesses and valuations. Terra Drone is still loss-making and trades around 40 times sales. QD Laser has reached profitability but commands a P/E above 200. Kioxia, despite its spectacular 434.5% rally, trades at an estimated P/E below 9 based on the figures we recently discussed.

None of the three currently pays a dividend.

Two stocks we will continue to follow

Terra Drone’s 851% gain is particularly unusual when set against FY2027 guidance for only 6.1% revenue growth and another substantial net loss. QD Laser’s underlying growth outlook is stronger, with analysts expecting revenue to increase more than 33% in FY2027, but its valuation has risen above 200 times estimated earnings.

Both companies therefore enter the final months of 2026 with share prices that have moved much faster than the growth they reported in recent years.

DividendJapan.com will continue following both stocks, alongside Kioxia and the many other Japanese growth and semiconductor names we have covered extensively.

Source: Company financial results and disclosures, combined with the market, consensus and valuation data supplied for this article.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Japan’s stock market will once again see a busy round of stock splits at the end of July 2026, with seven Tokyo Stock Exchange-listed companies scheduled to split their shares. Stock splits increase the number of shares outstanding while proportionally reducing the share price, making shares more affordable without changing a company’s market value. Notably, several companies with relatively modest share prices are also carrying out splits, including ARTNER, M-mart and NIRECO.

Key points in this article

• Seven Japanese companies will carry out stock splits at the end of July 2026.

• Sumitomo Mitsui Trust Group and NITCHO will execute the largest 1-for-4 splits.

• ARTNER risks losing its Dividend Hero status after a 2.4% dividend increase.

• Several relatively low-priced stocks, including M-mart, ARTNER and NIRECO, are also splitting their shares.

• Last month no less than 30 shares did a stock split

The largest split in terms of market prominence comes from Sumitomo Mitsui Trust Group (8309), one of Japan’s leading trust banks. The shares trade at 6,734 yen (July 21) and will undergo a 1-for-4 split. The bank has built an impressive dividend growth record in recent years, with average dividend growth of roughly 30% annually over the last two years. The current dividend yield stands at 2.9%.

ARTNER (2163), an engineering staffing and technical outsourcing specialist, trades at 2,004 yen and will complete a 1-for-2 split. The company has been a Dividend Hero, but its dividend increase for fiscal 2026 was just 2.4%, meaning it is expected to lose its Dividend Hero status in 2027. The shares have also been under pressure, pushing the dividend yield up to 4.2%.

Eternal Hospitality Group (3193), formerly known as Torikizoku Holdings, operates restaurant chains in Japan and has also expanded into the United States with several yakitori restaurant concepts. The shares trade at 2,927 yen and will split 1-for-2. The company has raised its dividend significantly in recent years and currently trades at a forward P/E of around 17 with a 1.6% dividend yield.

Another restaurant operator, ASAKUMA (7678), trades at 6,550 yen and will also split 1-for-2. Unlike the other companies in this group, ASAKUMA does not pay a dividend. The shares have nevertheless performed strongly, gaining around 35% year-to-date and trading close to an all-time high.

NIRECO (6863), a manufacturer of industrial measuring and control equipment, trades at 2,696 yen and will complete a 1-for-3 stock split. The company reduced its dividend by more than 6% this year, making its decision to split the shares despite the relatively low share price particularly notable.

M-mart (4380), which operates a business-to-business online marketplace for the food industry, trades at 1,199 yen and will carry out a 1-for-2 split, making it one of the lowest-priced stocks in this group to split its shares.

The remaining company is NITCHO Corporation (2961), a food-related business whose shares trade at 6,310 yen. NITCHO will execute one of the largest splits in this round with a 1-for-4 ratio.

Stock splits remain a common feature of the Japanese market, particularly as companies seek to improve liquidity and broaden access for retail investors. The latest batch also highlights that Japanese companies continue to announce splits across a wide range of sectors, from financial services and industrial technology to restaurants and food distribution, even when some of the shares already trade at relatively modest price levels.

Last month (At the end of June 2026) a total of 30 stocks did a stock split in Japan, including Dividend Aristocrat KAO Corporation. As a result you can now invest in Kao (with a minimum 100 shares purchase) for 3,270 yen.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

This March Wavelock received a privatisation bid from City Index Eleventh Inc. for 1,070 yen per share. Last week we last checked on the stock price that was 1,058 yen just days before the delisting. Last year Wavelock shares gained a whopping 76.2% in Tokio, drawing our attention to the stock that last hiked its dividend for FY 2020, when a 7.1% increase to 30 yen per share was announced.

Wavelock paid this dividend for the last 6 consecutive years and is now delisted. Please note that most stocks that we track in Japan are raising their dividend every single year.

IPOS and Delistings: Record year 2026?

Japan is known for its many Initial Public Offerings every year, but also for the high number of shares that are delisted by either being taken private or acquired by a (foreign) company.

In 2026 so far we already counted more than 60 companies that have been delisted. The actual number will probably be a bit higher since we don’t track all listed shares, even though we cover the biggest part.

Just in the last couple of weeks we added 9 more companies to the ‘delisted’ status in our database, including V-Cube Inc, Vario Secure Inc, e’grand co, Gfoot and Alleanza Holdings. The biggest company delisted with a market cap over $1 billion was MCJ Co (TSE: 6670).

Other big names being delisted in 2026 earlier include Toyota Industries (TSE: 6201), SCSK Corp (TSE:9719), Fujitec Co (TSE: 6406), Sumitomo Densetsu (TSE: 1949) and several other companies with a market cap of more than $1 billion.

Some interesting names that are delisted also include Fast Fitness Japan (TSE: 7092), a stock that we personally owned (and we are still waiting for the payment by the acquirer, this can take very long in Japan unfortunately).

Last but not least: Three real Dividend Heroes from Japan have been acquired in 2026 and delisted: Previously mentioned SCSK Corp and Sumitomo Densetsu and third Dividend Hero Saint-Care Holding Corp (TSE: 2374).

For the second half of 2026 we expect dozens of more companies to be delisted in Japan.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

The biggest winner remains Kioxia Holdings, which closed Friday at ¥81,200. That is an astonishing move considering we first highlighted the stock around ¥3,500 last year. Despite the explosive share price performance, Kioxia still trades at an estimated P/E ratio below 9, making it one of the cheapest major semiconductor stocks globally. The company does not pay a dividend, but its market capitalization has now reached approximately $277 billion.

Key Points

• Kioxia closes at ¥81,200, up dramatically from levels around ¥3,500 when DividendJapan first covered the stock

• Disco gains another 18.4% this week, closing at ¥79,900

• Tokyo Electron rises 15% in a week to a new all-time high near ¥68,000

• Lasertec continues to recover strongly, closing at ¥44,000

• Kokusai Electric jumps 22% and emerges as one of Japan’s newest semiconductor stars

• AI-related investment continues to support growth expectations across the sector

A Remarkable Run for Japan’s Chip Stocks

Few sectors in Japan have generated as much excitement as semiconductors.

Disco Corp (TSE: 6146) remains one of the market’s biggest success stories that we highlighted last September when the stock traded at ¥40,000. The company manufactures precision dicing, grinding and polishing equipment used in semiconductor production. Shares closed Friday at ¥79,900, many times higher than when DividendJapan.com first covered the stock. Disco gained another 18.4% during the week alone. The company now carries a market capitalization of approximately $54 billion, trades at an estimated P/E ratio of 49, and offers a dividend yield of around 0.6%.

Another familiar name is Lasertec (TSE: 6920), the global leader in mask inspection systems used in advanced semiconductor manufacturing, particularly EUV technology. Shares closed Friday at approximately ¥44,000. We wrote about Lasertec last September with the stock trading at ¥20,000.

Lasertec currently trades at an estimated P/E ratio of 52, has a market capitalization of roughly $26 billion, and offers a dividend yield of around 0.8%.

Perhaps the most dramatic turnaround belongs to Tokyo Electron (TSE: 8035). We wrote about the company last year when shares traded near ¥20,000 during a difficult period for the stock. On Friday, Tokyo Electron closed near ¥68,000, marking a new all-time high after gaining another 15% this week. The company competes with major U.S. semiconductor equipment suppliers such as Lam Research, KLA Corporation, and Applied Materials. Tokyo Electron’s market capitalization now approaches $199 billion, with an estimated P/E ratio of 44 and a dividend yield of approximately 0.9%.

Kokusai Electric Emerges as a New Semiconductor Star

One stock that has received less attention on DividendJapan.com so far is Kokusai Electric (TSE: 6525).

Kokusai develops semiconductor manufacturing equipment used primarily in deposition processes, a critical step in advanced chip production. Its competitors include global equipment suppliers such as Applied Materials, Lam Research, and Tokyo Electron.

The company only returned to the stock market recently, completing its IPO on October 25, 2023. Like Kioxia, Kokusai is still relatively new to public investors.

Shares surged more than 22% on Friday, closing at ¥8,875. The stock is now up 61% in 2026, following a gain of approximately 100% in 2025. For a long time Kokusai lagged many of its peers, but investors have clearly become much more enthusiastic in recent months.

The company’s market capitalization now stands at approximately ¥2.12 trillion, equivalent to roughly $13 billion.

Dividend Remains a Weak Spot

One aspect that stands out is the dividend.

Unlike Kioxia, which pays no dividend at all, Kokusai does return cash to shareholders. However, the company kept its dividend unchanged at ¥37 per share for fiscal 2025/2026. That means the payout has now remained flat for two consecutive years.

Given the strong share price performance and favorable industry backdrop, the lack of dividend growth is noteworthy. At the current share price, the dividend yield is only about 0.4%, which is extremely low by Japanese standards.

Growth Expectations Drive Investor Enthusiasm

The reason investors remain excited is simple: growth expectations.

Revenue for fiscal 2026, which ended in March, declined 1.6% to ¥235 billion. However, analysts expect a sharp rebound. Consensus estimates currently forecast revenue growth of 28.2% in fiscal 2027, lifting sales to a record level above ¥300 billion.

Growth is expected to continue beyond that, with analysts projecting further double-digit increases in subsequent years.

Profit growth is even more impressive. Analysts expect earnings per share to rise by more than 56% to ¥201 per share in fiscal 2027. By fiscal 2028, EPS is expected to reach approximately ¥271, representing another year of growth approaching 35%.

The company also maintains a debt-free balance sheet, adding to its appeal.

Valuation and Analyst Views

Kokusai currently trades at an estimated P/E ratio of 44 based on fiscal 2027 earnings projections. That may appear expensive at first glance, but earnings are growing rapidly.

In addition, many of Kokusai’s much larger U.S. peers trade at even higher valuations while offering similar dividend yields.

Analysts remain broadly positive:

• 3 Strong Buy

• 8 Buy

• 1 Sell

With AI-related investment continuing to accelerate globally and growth forecasts rising sharply, Kokusai has quickly become one of the semiconductor stocks we are watching most closely.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Tokyo Electron (TSE: 8035) continued its impressive rally on Thursday, gaining another 9% to ¥59,920 and moving within striking distance of its all-time high of ¥63,660, reached on June 4, 2026. The recovery has been remarkable considering the stock traded near ¥20,000 just a year ago, a period that now looks like a major buying opportunity in hindsight.

Key Points

• Shares gained 9% and are now up 75% YTD in 2026

• Stock is approaching its all-time high of ¥63,660

• Analysts expect 31% revenue growth in FY2027

• Market cap reaches ¥28.0 trillion ($175 billion)

• Debt-free balance sheet with over ¥500 billion net cash

• Dividend reaches a record ¥628 per share despite modest growth

One of Japan’s Semiconductor Giants

Tokyo Electron is one of the world’s largest suppliers of semiconductor manufacturing equipment, producing systems used in wafer fabrication, deposition, etching, cleaning and advanced chip production. The company is a key supplier to leading chipmakers worldwide and is often compared with U.S. peers such as Applied Materials, Lam Research and KLA Corporation.

Growth Returns After A Difficult Period

The stock struggled a year ago as growth slowed significantly. Revenue for fiscal year 2026 (ended March) increased by only 0.5% to ¥2,444 billion, helping explain why investor sentiment was considerably weaker at the time.

The outlook has since improved dramatically. Analysts currently expect revenue to rise by more than 30% to ¥3,183 billion in FY2027, with further double-digit growth projected in subsequent years. Profit growth is also expected to remain strong.

Given those forecasts, it is perhaps unsurprising that investors have aggressively re-rated the stock.

Valuation and Balance Sheet

Tokyo Electron now carries a market capitalization of approximately ¥28.04 trillion ($175 billion), making it one of Japan’s largest listed companies.

The company maintains a very strong financial position, ending FY2026 with more than ¥500 billion in net cash and no net debt. Shares currently trade at an estimated P/E ratio of 39 based on analyst projections for the current fiscal year.

Dividend Still Trails Share Price Performance

At the current share price, Tokyo Electron offers a dividend yield of roughly 1.1%.

Dividend growth has been somewhat inconsistent over the years. After increasing by more than 50% the previous year, the dividend for FY2026 rose by only 6% to a record ¥628 per share. Two years earlier, however, the dividend was reduced by 22%.

While Tokyo Electron is not viewed as one of Japan’s premier dividend-growth stocks, continued earnings expansion could support substantially higher payouts in the coming years. Based on current earnings expectations, a dividend of ¥1,000 per share or more by FY2028 appears achievable.

Analysts Remain Highly Bullish

Analyst sentiment remains overwhelmingly positive:

• 7 Strong Buy

• 13 Buy

• 2 Hold

• 0 Sell

One Drawback: The High Share Price

One challenge for retail investors is Tokyo Electron’s high share price. Because Japanese stocks are typically traded in lots of 100 shares, establishing a position requires an investment of several million yen. A stock split, just like Fujikura did recently, would likely improve accessibility for smaller investors.

The same issue applies to several other high-flying Japanese growth stocks, including Kioxia, whose share price has also surged far beyond levels seen just a year ago.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Fujikura Ltd (TSE:5803) continues to surge in Tokyo, hitting a new all-time high shortly after completing one of the largest stock splits in Japan this year. The company remains one of the standout performers among Japanese equities, extending a remarkable multi-year rally. Fujikura was one of more than 60 Japanese companies that carried out a stock split in the first quarter of 2026, including 4 Dividend Heroes.

Key Points

• Fujikura completed a 6-for-1 stock split, one of the largest in Japan in Q1 2026

• Shares quickly rallied to a new all-time high above ¥6,000

• Stock is up nearly 100% in 2026, following +174% in 2025 and +500% in 2024

• Dividend increased >80% annually for three consecutive years

• Dividend yield: ~0.5% due to strong share price gains

From Stock Split to New Highs

Fujikura was one of more than 60 Japanese companies that carried out a stock split in the first quarter of 2026. Among them, Fujikura’s 6-for-1 split stood out as one of the largest.

The split initially brought the share price back to a more accessible level, but that effect proved short-lived. Shortly after the adjustment, the stock resumed its upward momentum, climbing to a new all-time high of over ¥6,000.

Strong Momentum Since 2025

DividendJapan previously highlighted Fujikura in October 2025, when the stock traded at a split-adjusted level of around ¥2,600. Since then, the rally has accelerated significantly.

While not matching the extreme performance of Kioxia, which surged nearly tenfold over a similar period since we wrote about it first in September 2025, Fujikura’s returns remain highly impressive. The stock gained 174% in 2025 and an extraordinary 500% in 2024. In 2026, it is already up nearly 100% year-to-date.

With a market capitalization now approaching $63 billion, Fujikura has rapidly become one of the larger companies in Japan.

Valuation and Growth Expectations

At current levels, Fujikura trades at an estimated price-to-earnings ratio of around 60 for fiscal year 2026, reflecting strong growth expectations.

Analysts forecast 19% revenue growth for FY2026 (ending March) and 15% growth for FY2027. Given the elevated valuation, these growth rates may be seen as relatively modest compared to the recent share price performance.

Dividend Growth Stands Out

Despite the strong rally, Fujikura remains notable for its dividend profile. Unlike some high-growth Japanese stocks, the company does pay a dividend and has increased it aggressively.

Over the past three years, Fujikura has raised its dividend by more than 80% annually, demonstrating a clear focus on shareholder returns. However, due to the sharp rise in the share price, the dividend yield has declined to around 0.5%.

Analyst View

Analyst sentiment remains broadly positive, with 4 strong buy, 8 buy, and 2 hold ratings, and no sell recommendations currently reported.

Stock Splits Gain Popularity in Japan

Fujikura’s split is part of a broader trend in Japan, where more than 60 companies executed stock splits in Q1 2026. This includes several Japanese banks, four Dividend Heroes, and previously covered Sanrio (TSE: 8136) — the company behind Hello Kitty, whose shares are now accessible at around ¥1,000 following its split.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Japan’s equity market saw a notable wave of delistings in the first quarter of 2026, with 30 companies removed from our database due to takeovers and other corporate actions. Among them were three standout Dividend Heroes — companies with long and consistent dividend growth histories — highlighting a growing trend of high-quality firms being taken private.

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Key Points

• 30 Japanese stocks delisted in Q1 2026 due to M&A and corporate actions

• Three Dividend Heroes removed: SCSK, Saint-Care and Sumitomo Densetsu

• SCSK was the largest, with a market cap of over €10 billion (~$11 billion)

• Several other companies above $1 billion market cap also exited the market

• Strong dividend track records lost as companies go private

Three Dividend Heroes Exit the Market

The most notable removals were:

• SCSK Corp (TSE: 9719)
  A major Japanese IT services and systems integration company, providing cloud, outsourcing and digital transformation solutions to corporations.

• Saint-Care Holding Corp (TSE: 2374)
  A healthcare and nursing care provider, offering home care, facility-based services and support for Japan’s aging population.

• Sumitomo Densetsu Co Ltd (TSE: 1949)
  An engineering and construction company, focused on electrical infrastructure, telecommunications systems and industrial facilities.

All three companies were part of our Dividend Heroes selection for 2026, making their delisting particularly notable.

SCSK was a big winner in 2025 with a stock price gain of 70.8% to 5.695 yen; Saint-Care gained 60.2% in 2025 and Sumitomo Densetsu also was a big winner with a 96% stock price gain. These are Dividend Heroes: strong dividend growth AND strong stock performance, resulting in stock markets exit in 2026 for all three.

SCSK: Largest and Most Established

Among the three, SCSK was by far the largest, with a market capitalization of over €10 billion (approximately $11 billion) at the start of 2026.

The company had an exceptional dividend track record, including:

• 13 consecutive years of dividend increases

• No dividend cuts in over 30 years

• Average dividend growth of over 13% annually across three decades

• A 18.3% dividend increase in 2025

Its removal represents a significant loss for dividend-focused investors in Japan.

Other Dividend Heroes Also Exit

The other two Dividend Heroes also had strong records:

• Sumitomo Densetsu

  • 13 consecutive years of dividend growth

  • Dividend increased by 38% in 2025

• Saint-Care Holding

  • 16 consecutive years of dividend increases

  • Dividend raised by 20% in 2025

With their delisting, all three companies are automatically removed from the Dividend Heroes selection for 2026.

Broader Wave of Delistings

In addition to these three, several other notable companies with a market capitalization above $1 billion were taken off the market in Q1, including:

• Fujitec Co (elevators and escalators)

• Sumitomo Riko (automotive rubber and industrial components)

• Hino Motors (commercial vehicle manufacturer)

• Aiful Corp (consumer finance)

• Paramount Bed Holdings (medical and nursing care beds)

Another notable name was Freund Corp, a company with a particularly strong dividend history, having delivered 29 consecutive years of stable or rising dividends before its delisting.

A Changing Market Landscape

While Japan continues to see a steady flow of IPOs, the pace of delistings — especially among high-quality dividend-paying companies — is striking. The removal of 30 companies in a single quarter, including multiple Dividend Heroes, underscores how corporate actions are reshaping the Japanese equity market.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Only 26 Japanese companies pay over $1 billion in dividends, highlighting a clear gap with U.S. giants like Microsoft.

Japan’s dividend landscape remains relatively concentrated, with just 26 companies paying more than $1 billion annually in dividends. That is a surprisingly low number compared to the United States, where multiple companies — led by Microsoft with roughly $27 billion in annual dividends — significantly exceed that threshold.

At the top of Japan’s list stands Toyota Motor Corp (TSE: 7203), by far the country’s largest dividend payer, distributing approximately $8.9 billion per year to shareholders.

Key Points

• Only 26 Japanese companies pay more than $1 billion in annual dividends

• Toyota Motor remains the largest payer at $8.9 billion annually

• Several well-known names dominate the list, including SoftBank, Mitsubishi, Itochu and Tokyo Electron

• Compared to the U.S., Japan has far fewer mega dividend payers

• Dividend growth and consistency remain key themes among Japan’s largest companies

Toyota: Japan’s Dividend Leader

Toyota Motor is not only Japan’s largest dividend payer, but also its largest listed company, with a market capitalization of around $320 billion.

The automaker — known globally for brands such as Toyota and Lexus — has built a strong reputation for stable and growing shareholder returns. Toyota has now increased its dividend for four consecutive years and has not cut its dividend since the reductions during the financial crisis in 2009 and 2010.

At a current share price of ¥3,247, Toyota offers a dividend yield of 2.9%. The company pays dividends twice per year, with a final dividend of ¥50 (ex-date March 28) and an interim dividend of ¥45 (ex-date September 29).

Top Dividend Payers in Japan

Below is an overview of the largest dividend-paying companies in Japan:

• TSE:7203 – Toyota Motor Corp
  Annual dividend: $8.9 billion
  Global automotive leader

• TSE:5401 – Nippon Steel Corp
  Annual dividend: $5.4 billion
  One of the world’s largest steel producers

• TSE:8306 – Mitsubishi UFJ Financial Group
  Annual dividend: $4.8 billion
  Japan’s largest banking group

• TSE:9432 – NTT Inc
  Annual dividend: $3.0 billion
  Telecommunications giant

• TSE:2914 – Japan Tobacco Inc
  Annual dividend: $2.9 billion
  Major global tobacco company

• TSE:8316 – Sumitomo Mitsui Financial Group
  Annual dividend: $2.9 billion
  Leading Japanese banking group

• TSE:4519 – Chugai Pharmaceutical Co Ltd
  Annual dividend: $2.9 billion
  Innovative pharmaceutical company

• TSE:9434 – SoftBank Corp
  Annual dividend: $2.6 billion
  Telecom and investment-focused group

• TSE:8058 – Mitsubishi Corp
  Annual dividend: $2.5 billion
  Diversified trading house (sogo shosha)

These companies represent a mix of industries, including automotive, banking, telecom, pharmaceuticals and industrial conglomerates — reflecting the breadth of Japan’s dividend base.

Japan vs. U.S.: A Clear Gap

What stands out most is the difference in scale between Japan and the United States. While Japan’s largest payer distributes just under $9 billion annually, U.S. companies regularly exceed that level, with at least 10 firms paying over $10 billion per year.

This highlights a structural difference in capital allocation and shareholder returns, with U.S. firms generally returning more cash to shareholders at the very top end.

Final Thoughts

At Dividend Japan, we closely track all of these companies — including their dividend history, growth rates and consistency over time.

If you would like a deeper dive into any of these stocks, feel free to leave a comment. We are happy to cover specific companies in future articles.

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Also, remember that DividendJapan.com is completely free. To keep growing and continue providing this service, we greatly appreciate your support — even simple interaction with our articles helps us a lot.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Tokio Marine (TSE:8766) surged another 14.6% on March 25 to ¥7,857, hitting a new all-time high after news that Berkshire Hathaway has taken a $1.8 billion (2.5%) stake. The stock had already jumped 17.1% the previous day, bringing its 2026 gain to +35%. Alongside this rally, Tokio Marine continues to deliver strong dividend growth, with a ~2.5% yield and recent increases of up to 40%.

Key Points

• Shares up +14.6% to ¥7,857; +35% YTD 2026

• Berkshire Hathaway takes 2.5% stake (~$1.8bn)

• Dividend FY2025: ¥172 (+~40%), interim FY2026: ¥105.5 (+30%)

• Market cap approx. ¥15.2tn (~$96bn)

Company Overview

Tokio Marine (TSE:8766), founded in 1879, is one of Japan’s largest insurance groups, operating across dozens of countries with businesses in property & casualty insurance, life insurance and reinsurance. The company has built a strong global footprint and focuses increasingly on risk diversification and international growth.

Partnership with Berkshire Hathaway

Tokio Marine announced it will sell treasury shares to National Indemnity, Berkshire Hathaway’s reinsurance unit, as part of a broader partnership. The cooperation includes reinsurance collaboration and potential joint acquisitions, combining Tokio Marine’s deal-making capabilities with Berkshire’s capital strength.

The company will offset dilution through share buybacks and confirmed that Berkshire will not exceed a 9.9% stake without board approval. The partnership is expected to improve earnings stability, particularly by reducing volatility from large catastrophe risks.

Financials & Fundamentals

Tokio Marine continues to combine strong share-price momentum with solid fundamentals. The stock has delivered average annual returns of over 27% over the past five years and adds another +35% in 2026 so far.

Despite this performance, the shares trade at a P/E of just over 15, with a dividend yield of approximately 2.5%, reflecting the typical combination of moderate valuation and income seen in Japanese large-cap stocks.

Dividend

Tokio Marine has significantly accelerated its dividend growth. The dividend for FY2024/2025 increased nearly 40% to ¥172, while the interim dividend for the current fiscal year rose 30% to ¥105.5.

The stock goes ex-dividend on March 30 for the interim payment. Over the past five years, dividend growth has averaged around 19% per year, an unusually high level for a global insurance company.

Analyst Overview

Analyst sentiment remains positive, with 3 Strong Buy, 8 Buy and 3 Hold ratings. Following the recent sharp share-price increase, the average price target now sits below the current share price.

Summary

Tokio Marine (TSE:8766) continues its strong momentum, driven by a major strategic partnership with Berkshire Hathaway and sustained global growth. The company combines high double-digit dividend growth, a 2.5% yield, and a moderate valuation, even after a sharp rally. With shares at new highs, the latest move highlights both strong investor demand and the impact of long-term capital partnerships on Japan’s insurance sector.

Previously Berkshire Hathaway mostly invested in Japanese trading houses, including Mitsui, Marubeni, Itochu, Mitsubishi and Sumitomo.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Humanoid robots are moving from early prototypes toward large-scale industrial deployment. According to Barclays, investments in humanoids could rise from roughly $3 billion today to as much as $200 billion by 2035, within a broader physical AI market potentially approaching $900 billion. Japan is structurally positioned in this ecosystem through precision motion and automation specialists such as Harmonic Drive Systems (TSE:6324) and FANUC (TSE:6954).

Key Points in this article

• Physical AI could approach $900bn by 2035, with humanoid investment rising from ~$3bn today toward $200bn

• China leads deployment with 85% of humanoid installations and 55% of industrial robots

• Autonomous vehicles may account for up to $550bn of the total physical AI market

• Each humanoid integrates 20–40 actuated joints, driving demand for precision gears and motion systems

• Japan is strategically positioned through companies like Harmonic Drive Systems and FANUC

From AI Software to Physical AI

The first AI wave was dominated by semiconductors and hyperscalers. The second wave expands beyond digital infrastructure into mechanical execution: robots that physically interact with the world.

Barclays frames this shift around advances in what it calls “brains, brawn and batteries”:

• Computing power enabling real-time AI decision-making

• Mechanical precision systems enabling movement

• Energy systems providing portable power

Today, humanoid robotics remains a small market of roughly $3 billion in annual investment, but cumulative investment over the coming decade could reach $40 billion, potentially accelerating toward $200 billion by 2035.

The broader physical AI market — including autonomous vehicles, drones and industrial robotics — could reach $500 billion to $1.4 trillion by 2035. Autonomous vehicles alone may account for up to $550 billion, nearly half of that total.

Deployment remains early, but scaling is visible:

• Roughly 15,000 humanoid robot installations last year

• Over 85% occurred in China

• China accounted for 55% of global industrial robot installations in 2024

• The U.S. represented approximately 13% of humanoid installations

Acceleration in humanoids is expected after 2030, but industrial robotics and automation are already scaling.

What Makes Humanoid Robots Hardware-Intensive

Humanoid robots differ from traditional industrial robots that perform one repetitive motion. They are designed to operate in human environments with articulated limbs and dynamic balance.

A typical humanoid may include:

• 20–40 actuated joints

• Multiple precision reduction gears per limb

• High-torque servo motors

• Depth cameras and machine vision systems

• Thermal management systems

• Battery modules

• AI control units

By 2026, humanoids will not possess consciousness or intuition. However, through embodied or “physical” AI, they can autonomously interpret sensor data and execute trained tasks in complex environments such as:

• Manufacturing

• Food processing

• Warehousing

• Healthcare assistance

• Defense applications (e.g., bomb disposal)

The mechanical complexity creates a substantial addressable market for component suppliers.

Tesla and the Scaling of Production

Tesla is one of the most visible developers through its Optimus platform.

Optimus specifications include:

• Height: 1.73 meters

• Weight: 57 kg

• Walking speed: up to 8 km/h

• Lifting capacity: ~20 kg

A third-generation version is expected in 2026, with large-scale production targeted from 2027.

While robots are assembled in Texas, the supply chain is global:

• AI chips from Samsung

• Sensors from Honeywell (HON)

• Precision mechanical components from Schaeffler (Germany)

• Actuator systems reportedly linked to Zhejiang Sanhua Intelligent Controls (China)

Zhejiang Sanhua has been associated with actuator-related orders reportedly valued around $685 million, highlighting the scale of mechanical content per robot.

China’s Rapid Expansion

UBTech Robotics has announced annual production capacity exceeding 10,000 robots by 2026, with prior-year orders of approximately 1.4 billion yuan. The company recently signed agreements with Airbus for aircraft manufacturing applications.

Other players in the humanoid ecosystem include:

• Boston Dynamics (owned by Hyundai Motor)

• Figure AI (valuation reported around $39 billion)

• 1X Technologies

Automotive companies are heavily involved due to expertise in battery systems, electric drivetrains and high-volume manufacturing.

The Second Wave: Actuators, Gears and Sensors

Barclays argues that the second AI wave broadens the opportunity beyond chips and cloud providers to hardware specialists.

The robotics actuator market is projected to grow at a 10–14% CAGR toward 2030–2034, driven by industrial automation, collaborative robots and autonomous systems.

Companies active in relevant segments include:

• Parker Hannifin (PH) — motion control systems and actuators (Parker Hannifin is in the Dividend Hike Portfolio)

• Teledyne Technologies (TDY) — sensors, machine vision, FLIR thermal systems

• Teradyne (TER) — collaborative robots and AI chip testing

Teradyne’s robotics division is projected to grow at more than 20% annually through 2028, illustrating the interconnection between digital AI infrastructure and physical robotics systems. As demand for AI chips accelerates, the need for advanced semiconductor testing equipment rises in parallel.

An interesting structural detail is that Teradyne and Japan’s Advantest (TSE: 6857) form a global duopoly in Automated Test Equipment (ATE) for the semiconductor industry. Together, the two companies control the vast majority of the global market for testing advanced chips.

As AI-driven semiconductor production expands, this duopolistic position reinforces the strategic link between AI hardware, chip validation and downstream robotics deployment.

Japan’s Strategic Role in Humanoid Robotics

Japan’s positioning is less visible at the branding level, but structurally important at the component level.

Harmonic Drive Systems (TSE: 6324)

Harmonic Drive Systems (TSE: 6324) is a global specialist in high-precision reduction gears used in robotic joints. These systems enable:

• High torque density

• Minimal backlash

• Smooth rotational accuracy

• Compact integration

In humanoid robots, precision reduction gears are critical for shoulders, elbows, hips and knees. Since each humanoid integrates multiple high-precision gear assemblies per limb, scaling production directly increases demand for these components.

Japan’s expertise in ultra-precise motion systems places Harmonic Drive at a structurally relevant position in the humanoid value chain. The company itself frames its long-term ambition under the vision of becoming “The best provider of total motion control in harmony with the future.”

Interestingly, the stock underperformed in both 2024 and 2025, but investors have clearly rediscovered the story in 2026, with the share price up roughly 16% year-to-date. The spotlight intensified last week when the company announced approval from the Tokyo Stock Exchange to transfer its listing from the Standard Market to the Prime Market, effective February 27, 2026. On that news alone, the stock closed 14.7% higher in one session.

At a recent price of ¥4,375, the company has a market capitalization of approximately ¥421 billion (around $2.7 billion). The forward P/E for 2026 is high at roughly 264, reflecting temporarily depressed earnings. However, consensus expects earnings growth to accelerate sharply, bringing the 2027 multiple down toward the mid-80s.

Revenue contracted over the past two fiscal years, but expectations have turned more constructive:

• FY2026 (ending March): revenue expected +7.3% to ¥59.7 billion

• FY2027: revenue growth around 15%

• FY2028: growth above 14%

Profit growth is projected to outpace revenue expansion over the coming years, which partially explains the elevated near-term valuation.

Financially, Harmonic Drive is conservatively structured, reporting no debt and net cash of approximately ¥4.2 billion at year-end 2025. Net cash is expected to increase further in line with growing free cash flow.

The dividend stands at ¥20 annually, implying a yield of roughly 0.5%. Unlike FANUC, Harmonic pays semi-annually, but the dividend has fluctuated in recent years and does not show a consistent growth pattern. The company does not currently repurchase shares.

Analyst sentiment shows divergence: 2 strong buy, 6 buy, 1 hold and 1 strong sell ratings. The dispersion reflects valuation sensitivity after the recent rally.

From a structural perspective, Harmonic Drive is one of the purest listed exposures to humanoid joint mechanics within Japan.

FANUC (TSE: 6954)

FANUC (TSE: 6954) does not produce humanoid robots, but it is one of the world’s largest suppliers of:

• Industrial robot arms

• CNC systems

• Motion control platforms

• Factory automation systems

These technologies underpin global manufacturing automation and are transferable to humanoid robotics applications, particularly in motion control and precision actuation.

As of 23 February, FANUC trades around ¥6,421, giving it a market capitalization of approximately ¥6.31 trillion (about $40.7 billion). The stock is up roughly 5.5% year-to-date in 2026, following a 20% gain in 2025.

Revenue development has been weak over the past two years, but consensus expects a return to growth in 2026, with sales projected to rise about 5.5% to ¥841 billion.

The forward P/E is around 37.

One of FANUC’s most distinctive characteristics is its balance sheet: the company is effectively debt-free, holding approximately ¥590 billion in net cash at the end of 2025. It has also consistently repurchased shares in recent years, supporting capital returns.

Another big company from Japan that develops humanoid robots is Kawasaki Heavy Industries (TSE:7012). Kawasaki Heavy Industries has developed humanoid robots, mainly through its Kaleido series, designed for research and human-collaborative tasks. These robots are still experimental, while the company’s main robotics business focuses on industrial manufacturing robots.

The dividend, however, is variable. The most recent fiscal year dividend of ¥94.39 per share was below the historical peak. The yield currently stands near 1.6%, but payout levels fluctuate depending on earnings.

Analyst coverage is broadly constructive: 2 strong buy, 13 buy, 8 hold and 1 sell recommendations.

Structural Contrast: Harmonic vs FANUC

Both companies experienced revenue pressure over the past two years, but the narratives diverge:

• Harmonic Drive offers more direct exposure to humanoid joint mechanics and potential upside from scaling volumes, but at a high valuation and with dividend variability.

• FANUC represents a broader industrial automation platform with a fortress balance sheet, steady share buybacks and indirect humanoid leverage through motion control systems.

Both remain debt-free and financially solid, which is notable within capital-intensive manufacturing industries.

he humanoid robotics theme is still early-stage, but the positioning of Japanese component makers is becoming increasingly visible.

Harmonic Drive Systems (TSE: 6324) offers direct exposure to precision reduction gears used in robotic joints. The stock has rebounded strongly in 2026 after two weaker years and recently moved to the Prime Market of the Tokyo Stock Exchange. Revenue growth is expected to reaccelerate over the coming years, while the company remains debt-free. Valuation multiples are elevated, reflecting strong earnings growth expectations.

FANUC (TSE: 6954) operates on a much larger scale, with dominant positions in industrial robots, CNC systems and factory automation. The balance sheet is net cash positive, the company consistently repurchases shares, and revenue growth is expected to recover after two softer years. Dividend payments fluctuate depending on earnings.

Both companies are positioned differently within the robotics ecosystem:

• Harmonic Drive: focused precision gear exposure to humanoid joint mechanics

• FANUC: broad industrial automation platform with indirect humanoid relevance

The humanoid market itself could expand from roughly $3 billion today toward potentially $200 billion by 2035, within a broader physical AI opportunity approaching $900 billion.

How do you view these two Japanese robotics names within the humanoid growth theme?

• Do you prefer the more direct component exposure of Harmonic Drive?

• Or the scale, balance sheet strength and automation breadth of FANUC?

• Does valuation influence your view at current levels?

Share your thoughts in the comments — I’m curious how the Dividend Japan community sees this emerging robotics cycle.

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On Valuation and Momentum

Harmonic Drive’s sharp one-day move (+14.7%) following its Prime Market upgrade highlights how sentiment can shift quickly in Japan, particularly when structural growth narratives gain traction.

FANUC, meanwhile, benefits from scale, net cash strength and recurring automation demand.

The Structural Thesis

Humanoid robots remain early in deployment, but the numbers indicate scaling momentum:

• Installations heavily concentrated in China

• Industrial robotics expanding globally

• Actuator markets growing at double-digit rates

• Nearly 200 listed companies mapped across the physical AI ecosystem

If humanoid production expands from thousands to hundreds of thousands — and eventually millions — of units over the coming decade, demand for precision reduction gears, actuators, sensors and motion control systems becomes structurally embedded in the growth trajectory.

Within that framework, Japan’s strength lies in supplying the high-precision mechanical backbone required for humanoid functionality.

At DividendJapan.com, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Nissan Chemical (TSE:4021) jumped 17% to ¥6,869 after reporting stronger-than-expected Q3 results, beating internal targets on sales, operating profit and net income. The company also confirmed a record full-year dividend of ¥180, up from ¥174, supported by continued share buybacks. With an operating margin above 22%, low net debt and a dividend yield of around 3%, the results triggered a sharp rebound after several weaker years for the stock.

Key Points in this article

• Shares up 17% to ¥6,869 after Q3 results beat expectations

• Record full-year dividend of ¥180, up from ¥174

• Ongoing large share buybacks, total payout ratio 78.8%

• Market cap approx. ¥932bn (~USD 6bn)

Company Overview

Nissan Chemical is a Japan-based diversified materials and life-science group with activities that extend well beyond traditional chemicals. According to the company’s own description, its core businesses include performance materials, agricultural chemicals, pharmaceutical intermediates, functional materials for electronics, and other advanced chemical products.
A significant part of earnings comes from high-margin specialty products, including materials used in semiconductors, displays, and life-science applications, which differentiates Nissan Chemical from more cyclical bulk-chemicals producers.

Financial Performance & Fundamentals

Third-quarter results showed clear improvement. Sales increased by ¥8.7 billion (+15%), operating profit rose ¥2.6 billion (+21%), and net income grew by ¥1.0 billion (+9%). Both sales and operating profit exceeded internal targets, with sales beating expectations by ¥5.8 billion and operating profit by ¥3.4 billion. Net income also exceeded forecasts by ¥3.9 billion.

For the full fiscal year, Nissan Chemical expects full-year sales growth of around 8% in FY2026, reaching approximately ¥271.3 billion, with subsequent years expected to deliver 4–7% annual revenue growth. Operating margins remain strong at just over 22%, while the balance sheet is conservatively structured, with net debt of only ¥13 billion at the end of FY2025.

Based on current estimates, the shares trade at an estimated P/E of just under 19 for FY2026.

Dividend & Capital Returns

Nissan Chemical announced a record full-year dividend of ¥180 per share, up from ¥174 in the previous year. The dividend outlook remains unchanged versus the company’s latest guidance. At the current share price, the dividend yield is around 3%.
In addition to dividends, the company continues to return capital through regular share repurchases. Buybacks totaling ¥10.5 billion were announced and largely completed between March 2025 and February 2026. The total payout ratio is projected at 78.8%, reflecting a combination of dividends and buybacks.

Analyst Overview

Analyst sentiment is constructive. There are no sell ratings, with 2 Strong Buy, 4 Buy and 2 Hold recommendations. The absence of negative ratings reflects confidence in Nissan Chemical’s earnings quality, balance-sheet strength and capital-return policy.

Summary

Nissan Chemical delivered a sharp share-price rebound following strong Q3 results, supported by higher-than-expected sales and profits, a record dividend, and ongoing share buybacks. While the valuation has moved higher and the payout ratio is relatively elevated, the company combines stable revenue growth, very high operating margins, low leverage, and a dividend yield of around 3%, underpinned by a long-standing commitment to shareholder returns.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Lasertec (TSE: 6920) fell sharply on 2 February, with shares down 14% to ¥31,310 after the company released new earnings guidance. The move contrasts sharply with the recent positive surprise from Disco (TSE: 6146), another Japanese semiconductor equipment name. While Lasertec remains one of Tokyo’s strongest long-term performers in both share price and dividends, the latest outlook points to slower growth and a break in its long-standing pattern of double-digit dividend increases.

Key Points

• Shares fell 14% on 2 February to ¥31,310; 2026 YTD return now +6%

• FY2026 revenue expected to decline 12.5% to ¥220bn

• Dividend for FY2026 expected to remain unchanged at ¥329

• Interim dividend raised 15% to ¥132, ex-date 29 December, payment 12 March

Company Overview

Lasertec is a Japan-based semiconductor equipment manufacturer best known for advanced inspection and metrology systems used in leading-edge chip production. Over the past decade, the company has been one of the most successful stocks in Tokyo, supported by strong demand from the global semiconductor industry and its dominant position in critical process equipment.

DIVIDEND SHOCKER………
Lasertec indicated that the full-year dividend for FY2026 is expected to remain unchanged at ¥329, marking a clear shift from the strong double-digit growth seen in previous years.

Over the last ten years, Lasertec’s share price has risen by more than 9,000%, making it one of Japan’s standout long-term performers. Lasertec was one of the Dividend Heroes in Japan for years, but will drop from the top selection next year without a dividend hike.

Dividend

Lasertec has built an exceptional dividend track record. Over the past decade, total dividend growth amounts to nearly 2,800%, placing the company among the top dividend growers in Japan. The five-year dividend CAGR stands at around 50%, driven by rapid earnings expansion in recent years.

For FY2026, the company increased the interim dividend from ¥115 to ¥132, a 15% rise announced at the end of last week. The ex-dividend date for this interim payment was 29 December, with payment scheduled for 12 March.

However, Lasertec indicated that the full-year dividend for FY2026 is expected to remain unchanged at ¥329, marking a clear shift from the strong double-digit growth seen in previous years. At the current share price, the dividend yield is approximately 1%.

Financial Performance & Fundamentals

For the fiscal year ending 30 June 2026, Lasertec expects revenue to decline 12.5% to ¥220 billion. Earnings are also set to soften, with EPS projected to fall by nearly 15% to ¥72.

This guidance follows a period of exceptional growth: the stock gained 85% last year, and dividend growth remained strong through FY2025, when the dividend increased by 43%.

Based on current estimates, Lasertec trades at an estimated P/E of around 34 for FY2026, a relatively high valuation in light of declining revenue expectations and a flat dividend outlook.

Market Context

The sharp share-price reaction suggests that expectations had moved ahead of fundamentals. Similar to earlier periods in its history, Lasertec appears to be entering a phase of normalization after several years of outsized growth. While demand for advanced semiconductor equipment remains structurally important, the near-term outlook has clearly moderated.

Summary

Lasertec remains one of Japan’s most successful long-term semiconductor stocks, with extraordinary share-price appreciation and a decade of exceptional dividend growth. However, FY2026 marks a turning point: revenue is expected to decline, earnings are set to fall, and the company plans to hold the dividend flat at ¥329, ending a long stretch of double-digit increases.

At a valuation of roughly 34x earnings and a dividend yield of around 1%, the market reaction reflects a reset in growth expectations after several years of exceptional performance.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Disco Corp (TSE:6146) stunned the Tokyo market on Wednesday after reporting exceptionally strong quarterly results, sending the stock to a new all-time high. Shares jumped by the maximum ¥10,000 daily limit, closing at ¥68,570, and are expected to remain in focus in the next session.

Key Points

• Disco shares surged by the maximum daily limit to ¥68,570, a new all-time high

• Stock is now up 42% in 2026, after an already extreme recovery in 2024–2025

• Q3 operating profit: ¥47.3 billion, well above expectations

• Market capitalization rises to ¥6.4 trillion ($40 billion)

• Analyst price targets now sit well below the current share price

From Deep Lows to Record Highs

The scale of the move is striking. Just over a year ago, Disco shares traded near ¥24,000. In September 2025, DividendJapan.com published an in-depth article when the stock stood around ¥44,000. Since then, the rally has accelerated sharply, culminating in today’s record-breaking session.

Wednesday’s move marks one of Disco’s strongest single-day performances in decades and reflects a dramatic reassessment of the company’s earnings power.

Quarterly Results Exceed Expectations

Disco reported operating profit of ¥47.3 billion for the three months ended December, comfortably beating market expectations. For the nine-month period ended December 31, 2025, net sales increased 11.5%, while net income rose 8.7% year-on-year.

Detailed figures underline the strength of the quarter. Net sales reached ¥109.3 billion, with gross profit of ¥78.1 billion, resulting in a gross margin of 71.4%. Operating income came in at ¥47.3 billion, corresponding to an operating margin of 43.3%. Net income attributable to shareholders totaled ¥36.7 billion, a net margin of 33.6%. Overseas sales accounted for 91.5% of total revenue.

The company also guided for continued growth in net sales, net income and shipments for the fiscal year ending March.

Business and Market Position

Disco manufactures precision grinders and dicers used to cut silicon wafers into individual semiconductors. These tools are essential in advanced chip production, making Disco a key supplier in the global semiconductor ecosystem.

Demand for Disco’s equipment has strengthened alongside rising capital expenditure by major chip manufacturers, particularly in areas linked to memory, storage and AI-related applications. Management indicated that operations are currently running near full production capacity, with demand expected to remain strong.

Valuation and Analyst Gap

Before the earnings release, Disco traded at an estimated price-to-earnings ratio of around 50 based on today’s record share price. Following the results, earnings expectations have been revised upward, which may mechanically reduce that multiple going forward.

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What stands out is the gap between market pricing and analyst expectations. The average analyst price target is around ¥55,000, roughly 20% below today’s closing price. Prior to the results, eight analysts had a hold rating, and one analyst even carried a sell recommendation. These assessments are now likely to be reviewed in the coming days.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders!

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Asahi Group Holdings (TSE:2502) announced a 21.5% dividend increase for fiscal year 2025, an unusually large step for a global beer and alcoholic-beverage producer. While the share price has lagged in recent years, Asahi has continued to raise its dividend steadily for decades. The 2025 increase fits into a longer-term pattern: the company’s 10-year dividend CAGR stands at 12.6%, with several sizeable hikes already recorded in recent years.

Key Points

• FY2025 dividend raised 21.5% to ¥49 per share

• 10-year dividend CAGR: 12.6%

• Dividend yield around 3.1% at ¥1,700 share price

• Market cap approx. ¥2.6 trillion (USD 16.3 billion)

Asahi Group Holdings is a Japan-based global beverage group active in beer, alcoholic beverages, soft drinks and food products. The group owns well-known brands such as Asahi Super Dry and operates across Japan, Europe, Oceania and Southeast Asia. Asahi has expanded internationally over the past decade through acquisitions, particularly in Europe, and positions itself as a premium beverage producer with a focus on brand strength and operational efficiency.
The company’s market capitalization is approximately ¥2.6 trillion (around USD 16.3 billion).

Dividend

For FY2025, Asahi declared a full-year dividend of ¥49 per share, representing a 21.5% increase versus the previous year. In addition, the interim dividend for FY2026 was raised from ¥22 to ¥26, signalling continued dividend growth into the next fiscal year.

At a share price of around ¥1,700, the dividend yield stands at approximately 3.1%. In 2024, Asahi paid out roughly ¥58 billion in dividends against free cash flow of ¥258 billion, indicating ample coverage. Asahi is known for its strong dividend track record, just like Dividend Aristocrat Brown-Forman. The difference is that the yield is higher and the dividend growth is better for the company from Japan.

Financial Performance & Valuation

Asahi’s revenue grew 6.2% in 2024 to ¥2,939 billion, supported by price adjustments and overseas operations. For 2025, analysts expect flat revenue, reflecting a more stable demand environment.
The shares currently trade at an estimated P/E of around 12 for 2026 based on analyst forecasts. After a difficult period for the stock, Asahi rose 9.4% in 2025 and is up 3.7% so far in 2026.

Market View

Analyst sentiment remains broadly constructive, with 1 Strong Buy, 9 Buy and 4 Hold ratings. The average price target is ¥2,260, implying a substantial gap versus the current share price.

Summary

Asahi Group Holdings combines a relatively high dividend yield of 3.1% with double-digit dividend growth in 2025, a combination that stands out within the global beverage sector. The company’s long dividend history, moderate valuation, and strong cash-flow generation provide a factual basis for continued dividend capacity, while revenue growth is expected to remain stable in the near term.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders! Investing in Japan isn’t for everyone, given its unique trading hours, large price swings, currency fluctuations, lot size requirements, and limited analyst coverage — yet the country also offers some of the world’s best dividend growth opportunities, with countless hidden gems waiting to be discovered.

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.

Envipro Holdings Inc. (TSE: 5698) was one of the strongest gainers in Tokyo on January 14, 2026, with the share price rising 19.4% to ¥925 despite the absence of new announcements. The stock is now up 48% year-to-date, matching its 48% gain in 2024, making it one of the more remarkable multi-year performers in the Japanese small-cap space.

Key Points

• Share price jumped 19.4% to ¥925 with no company-specific news

• Stock up 48% YTD, following a 48% gain in 2024

• Dividend raised 150% in 2025 to ¥15, but still below the ¥25 peak three years ago

• Market cap: approximately ¥28 billion ($176 million)

• Latest quarterly revenue fell 18.5% year-on-year

Weak Results, Strong Share Price

Envipro’s most recent financial results were weak. Revenue for the quarter ended 30 September declined 18.5% year-on-year to ¥422 million, following a 4.3% revenue decline in the previous fiscal year. For the full fiscal year ending June 2026, the company forecasts a 12.4% increase in revenue.

Despite the recent share price surge, Envipro expects to keep its annual dividend unchanged at ¥15 per share, the same level as in 2025. While that represented a 150% increase last year, the dividend remains well below the ¥25 per share paid three years ago. The dividend was reduced in each of the two years prior to 2025.

Dividend Focus

From a dividend perspective, the picture remains mixed. The current payout marks a recovery after consecutive cuts, but the absolute level is still significantly lower than in earlier years. The company has indicated a stable dividend of ¥15 for FY2026.

Business Overview

Envipro Holdings is a Japan-based holding company primarily engaged in resource recycling. Its core activities include the collection of metal scrap and industrial waste, which are processed at subsidiary-owned treatment facilities through cutting, dismantling, crushing, sorting and solid fuel production.

The company’s products include iron scrap, non-ferrous metals such as copper, aluminum and stainless steel, as well as plastics. These materials are sold both domestically and overseas. Envipro is also active in disabled welfare services, photovoltaic power generation, rubber recycling, and the manufacturing and sale of rubber products.

Closing Note

With weak recent results, a dividend still below historical levels, and no new announcements, the reason behind the continued sharp rise in Envipro’s share price remains unclear.

At DividendJapan, we aim to highlight these opportunities and uncover hidden gems that may not yet be on your radar. Stay tuned as we explore Japan’s dividend growth stories and the next generation of market leaders! Investing in Japan isn’t for everyone, given its unique trading hours, large price swings, currency fluctuations, lot size requirements, and limited analyst coverage — yet the country also offers some of the world’s best dividend growth opportunities, with countless hidden gems waiting to be discovered.

Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.