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.

Leave a comment

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.

We have previously written several times on DividendJapan.com about the enormous number of stock splits that take place in Japan every year. Almost every month, dozens of companies carry out stock splits. This is largely driven by Japan’s market structure, where investors typically must purchase shares in minimum lots of 100. A high share price therefore makes many stocks less accessible for smaller investors, who would otherwise need to commit several thousand euros or dollars for a single position.

Stock splits offer a practical solution, and Japanese companies have been making extensive use of them for many years. Even on the very last trading day of 2025, more than 30 Tokyo-listed companies implemented a stock split. This group included several well-known and large names such as SoftBank Group, Sapporo Holdings, Bridgestone, and Itochu.

December 30, 2025 marked the final trading day of the year in Japan, as the stock exchange remains closed on December 31. It was a strong year for Japanese equities, with the broad TOPIX index gaining more than 22%. The Japanese Dividend Heroes performed even better, delivering a record year with a total return exceeding 35%. Many of these Dividend Heroes have already been covered on DividendJapan.com, while others will be discussed on our website in the coming years.

Below is an overview of some of the most well-known companies that implemented a stock split effective at the end of 2025. As mentioned, there were more than 30 splits on the final trading day of the year in Tokyo, including the following names:

• Itochu Corporation (TSE: 8001) – a major Japanese trading house active in global commodities, textiles, machinery, food, and consumer-related businesses – implemented a 1-for-5 stock split. Itochu is one of the ‘Buffett’ stocks from Japan that we highlighted earlier this year. You can now buy Itochu for 1,975 yen per share, versus almost 10,000 yen previously.

• SoftBank Group (TSE: 9984) – a multinational holding company focused on telecommunications, technology investments, and venture capital through the Vision Fund – carried out a 1-for-4 stock split.

• Bridgestone Corporation (TSE: 5108) – one of the world’s largest manufacturers of tires and rubber products for automotive and industrial use – completed a 1-for-2 stock split.

• Sapporo Holdings (TSE: 2501) – a Japanese beverage company best known for its beer brands, as well as alcoholic beverages and food products – executed a 1-for-5 stock split.

Another notable company implementing a significant stock split is Liberta Co. (TSE: 4935), a Japanese consumer products company specializing in lifestyle and functional goods. This stock was previously highlighted on DividendJapan.com as one of the biggest winners in Japan in 2025.

In total, we counted 32 stock splits on December 30, 2025, including three Dividend Heroes that become even more interesting in 2026 due to their lower share prices. We will provide updates on these stocks next year, so stay tuned — and please share our free newsletter as widely as possible. Many thanks in advance.

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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.

Japan stands out in 2025 as the clear global outlier in dividend growth, with more than 20 Japanese stocks already doubling their dividend within our dataset alone — a scale that is not even remotely matched by the US or Europe.

Key points in this article

• GMO Internet (TSE:4784): dividend +430.0% to 6.9 yen; yield 1.4%; share price 3,964 yen (+48.0% in 2025)

• MODEC (TSE:6269) and Mitsui E&S Holdings (TSE:7003): both dividend +300.0%; yields 0.9% and 0.7%

• Mitsui E&S Holdings (TSE:7003): share price 5,424 yen (+194.0% in 2025); market cap ~$3.5bn; forward P/E 17.5

• Sanrio (TSE:8136): dividend +184.0% to 53 yen after +58.5% (2024) and +121.0% (2023); yield 1.3% gross; P/E 24; market cap ~$8bn

What immediately stands out is how concentrated extreme dividend growth is in Japan this year. Within our own database, more than 20 Japanese companies have raised their dividend by over 100% in 2025. By comparison, only seven US stocks doubled their dividend this year, and these are mostly volatile payers with short or inconsistent payout histories. Europe shows a similar picture, with nine stocks meeting the same threshold.

Importantly, this is still not the full picture. We currently track more than 2,500 listed Japanese companies, but dividend data for 2025 has so far been updated for roughly 1,000 names. That means the real number of dividend increases above 100% could ultimately be 40 or even 50 companies. The conclusion is hard to ignore: Japan delivers, by a wide margin, the largest pool of strong dividend growers among major global markets in 2025.

Extreme dividend hikes are no longer isolated cases

This development no longer comes as a surprise. Japanese companies are increasingly focused on shareholder returns, and many newly listed firms begin paying dividends relatively soon after their IPO once profitability is established. At the same time, Japan is rapidly building longer dividend track records, with a growing number of companies that have increased dividends for ten consecutive years or more, including Kao Corporation, one of the very few genuine Dividend Aristocrats in Japan.

Looking at individual cases makes the scale of this shift even clearer. GMO Internet (TSE:4784) raised its dividend by 430.0% to 6.9 yen per share. While the dividend had been sharply reduced the year before, this increase follows several years of strong dividend growth prior to that adjustment. The company operates internet infrastructure, hosting, and online services, primarily in Japan, making this a case of volatility across cycles rather than a one-off payout.

Two additional names posted dividend increases of 300.0% in 2025. MODEC (TSE:6269) designs, builds, and operates floating production systems for the offshore energy sector, while Mitsui E&S Holdings (TSE:7003) is active in shipbuilding and industrial machinery. Both stocks have seen exceptionally strong share price performance this year, which explains why dividend yields remain relatively modest despite the headline growth figures.

Sanrio shows what sustained dividend acceleration looks like

One of the most striking dividend stories remains Sanrio (TSE:8136). Best known globally for Hello Kitty, the company raised its dividend by 184.0% in 2025 to a record 53 yen per share, following increases of 58.5% in 2024 and 121.0% in 2023. Few companies globally show three consecutive years of triple-digit dividend growth, making Sanrio a clear outlier even within Japan’s already exceptional dividend landscape.

What sets Japan apart in 2025 is not just the number of dividend increases, but how normalised extreme dividend growth has become. In other developed markets, triple-digit hikes remain rare and often tied to irregular payouts. In Japan, they increasingly reflect multi-year improvements in profitability, payout discipline, and capital allocation.

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.

STEP CO (TSE 9795) has evolved from a Kanagawa-based cram-school operator into one of Japan’s most reliable dividend growers. With strong profitability, predictable demand for exam-prep education, and a long history of disciplined expansion, the company is now positioning itself as a new Dividend Aristocrat in Japan. Earnings continue to rise steadily, margins remain among the highest in the sector, and the dividend has once again increased for FY2025.

Key Points

• Dividend yield: 3.6% at a share price of ¥2,374

• FY2025 dividend: ¥85 total (up 10.4% YoY); ¥45 final dividend paid on 16 Dec (ex-date 29 Sep)

• Growth profile: Revenue rising 3–5% annually; FY2025 revenue +5% to ¥15.85 bn

• Profitability: Operating margin above 23%; ROIC around 9.3–9.5%

• Valuation: Market cap ¥39.6 bn; estimated FY2025 P/E ≈ 14

• Earnings outlook: EPS ¥170.35 (FY2025), with potential to reach ~¥190 by FY2028

• Dividend stance: Payout ratio ~49%, above the Japanese corporate norm (~30%) yet supported by stable cash generation

Company Overview

STEP CO., LTD., founded in 1975, operates a tightly knit network of juku (cram schools) concentrated in Kanagawa Prefecture. Unlike nationwide chains, STEP follows a single-region strategy, focusing on high-quality instruction, long-tenured teachers, and consistent learning outcomes. This disciplined model has allowed the company to maintain strong brand recognition and a stable student base across elementary, junior-high, and high-school levels.

The company also offers after-school care services for younger children, extending engagement beyond exam preparation. Decades of controlled expansion and consistent academic results underpin its reputation as one of the most stable education businesses in Japan.

Dividend

STEP pays dividends on a semi-annual basis.
For FY2025 (ending September), the company will distribute ¥85 per share in total, representing a 10.4% increase year on year.

• Final dividend: ¥45

• Payment date: 16 December

• Ex-date: 29 September

• Dividend yield: 3.6% at ¥2,374

The payout ratio of roughly 49% is above the Japanese average (~30%), but remains aligned with STEP’s stable cash flow, minimal capital requirements, and steady earnings growth. STEP’s consistent increases place the company firmly on track as an emerging Dividend Aristocrat.

Fundamentals

STEP demonstrates the hallmark characteristics of a mature but consistently expanding education provider.

• Revenue growth: Typically 3–5% per year; FY2025 rose 5% to ¥15.85 bn

• 2026 revenue estimate: +4.1% growth

• Operating margin: Above 23%, among the strongest in the juku sector

• ROIC: Between 9.3–9.5%

• EPS: ¥170.35 in FY2025, projected to grow toward ~¥190 by FY2028

• Market cap: ¥39.6 bn

• Estimated P/E (FY2025): ~14

Earnings have been growing steadily for many years, supported by disciplined capacity additions and resilient local demand for education services.

Growth Drivers

STEP operates in a mature market, yet several structural elements support continued measured expansion:

• Stable local demand: Kanagawa remains one of Japan’s most competitive and education-focused prefectures.

• Premium positioning: Emphasis on teacher quality and structured instruction attracts parents seeking higher-value academic support.

• After-school care: Growing demand from dual-income households provides a steady, recurring revenue source.

• Selective expansion: New branches within the prefecture allow incremental growth without diluting teaching quality.

Competitive Landscape

The company competes in a fragmented market that includes large nationwide chains and smaller regional operators. Online learning platforms add new alternatives, but STEP’s classroom-based model and long-standing reputation maintain strong relevance—especially for students preparing for high-stakes entrance exams. Its localized scale and consistent academic performance provide recognizable differentiation in Kanagawa.

Outlook Summary

STEP CO. combines stable revenue growth, strong margins, expanding EPS, and a history of rising dividends. The FY2025 dividend increase reinforces its emerging status as one of Japan’s next generation of Dividend Aristocrats—companies able to sustain dependable dividend growth supported by long-term operational consistency.

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.

Alongside the name and ticker change, the company released its FY2026 consolidated earnings forecast, following the transition from a non-consolidated structure to consolidated accounting beginning in the third quarter of FY2026. QPS Holdings became the full parent company of QPS Research Institute through a share transfer completed on December 1, 2025.

FY2026 Consolidated Forecast (June 1, 2025 – May 31, 2026)

• Revenue: ¥4.0 billion

• Operating profit: ¥-2.2 billion

• Ordinary profit: ¥600 million

• Net profit attributable to owners: ¥500 million

• EPS: ¥10.37

The forecast reflects the performance of QPS Research Institute, which drives the group’s operational results. According to today’s release, the figures remain unchanged from the previously published FY2026 outlook dated July 11, 2025.

QPS Holdings currently shows a 57% year-to-date gain in 2025, trading at ¥1,740, corresponding to a market capitalization of ¥82.8 billion (approximately USD 529 million). The company is not expected to be profitable in FY2025, but analysts forecast a return to profitability in FY2026, implying an estimated forward P/E of around 167—conditional on profit materializing.

Three analysts currently cover the stock: one strong buy, one buy and one hold, with no sell recommendations reported.

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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.

Union Tool Co. (TSE: 6278) was one of Tokyo’s strongest performers in week 48, rising 22% to a closing price of ¥9,590 on November 28. Demand for the company’s high-precision PCB drills and carbide tools continues to grow rapidly alongside global investment in AI hardware, data-center servers and advanced electronics. In parallel, Union Tool has raised its dividend again for fiscal year 2025, extending a multi-year trend of steady dividend expansion supported by strong earnings momentum.

Key Points

• Week-48 share price jump: +22%, bringing 2025 YTD performance to +91%

• Nine-month FY2025 revenue: ¥28.02bn, up 22.7% year-on-year

• Dividend for FY2025 raised 25% to ¥105, payout ratio 34%

• Market cap approx. ¥190bn (~USD 1.2bn), one analyst rates the stock “Buy”

Company Overview

Union Tool is a long-established Japanese manufacturer of ultra-precision cutting tools, specializing in micro-diameter PCB drills, carbide end mills and high-performance industrial tooling. These products are essential inputs for the production of high-layer printed circuit boards and advanced substrates used in servers, semiconductors, automotive electronics and industrial equipment.

The company maintains a vertically integrated production system, allowing it to control product quality and precision at each stage. Union Tool generates approximately 69% of its revenue in Japan, with meaningful contributions from Asia, the United States and Europe. Stronger demand from China and Taiwan has been a key driver in recent quarters, especially in advanced PCB manufacturing.

History

Union Tool’s origins date back to Japan’s early industrial electronics era. Over several decades, the company has evolved from a domestic maker of drilling tools into a global specialist in micro-precision manufacturing technology.

During the 1970s and 1980s, Union Tool began differentiating itself by developing highly durable PCB drills capable of meeting the rising complexity of printed circuit boards used in consumer electronics. As circuit boards became denser and multi-layered, the company’s technology became increasingly essential.

Through the 1990s and 2000s, Union Tool expanded internationally, establishing production and sales bases across Asia, North America and Europe. Product development shifted increasingly toward carbide tooling and high-performance industrial tools as the electronics and semiconductor industries matured.

Over the past decade, Union Tool has positioned itself at the intersection of AI, data-center infrastructure and high-precision PCB manufacturing, benefiting from strong demand for advanced substrates and high-layer PCBs required in next-generation computing.

Financial Performance

Union Tool delivered strong results in the first nine months of FY2025. Revenue increased 22.7% to ¥28.02 billion, while operating profit surged 55.3%. Net profit grew 30.7%, and EPS reached ¥269.45.

For the full fiscal year 2025, the company forecasts revenue of ¥37.5 billion, reflecting continued robust demand. The prior fiscal year saw revenue rise 28.7% to ¥32.6 billion, and projections for FY2025 imply growth of 20.5% to approximately ¥39.3 billion.

Key Figures (Fundamentals) Union Tool Co

• Share price: ¥9,590 (Nov 28 close)

• Market cap: ~¥190 billion (~USD 1.2 billion)

• Dividend FY2025: ¥105 (+25% YoY)

• Dividend yield: ~1.3%

• Dividend outlook: ¥125 expected for FY2025; potential toward ¥150 in coming years

• Payout ratio: 34% (FY2024)

• FCF outlook: ~¥6.665bn estimated for FY2027

• Revenue FY2024: ¥32.6bn (+28.7%)

• Revenue FY2025 forecast: ~¥39.3bn (+20.5%)

• EPS FY2024: ¥305.86 (+71.7%)

• EPS FY2025 estimate: ¥364.7 (+19.2%)

• Operating margin: ~21%

• ROIC: ~7.5% (FY2024)

• P/E (2025 est.): approx. 26x

Earnings momentum has been strong: EPS increased 71.7% in FY2024 to ¥305.86, with analysts expecting a further 19.2% increase in FY2025 to ¥364.7. The company maintains a solid operating margin of around 21%, while ROIC has historically remained between 7% and 10% (FY2024: 7.5%). The estimated P/E ratio for 2025 stands at 26.

Dividend

Union Tool raised its dividend by 25% for FY2025 to ¥105 per share, marking the highest annual dividend in its history. This is the second time in five years that the company has increased its payout by more than 25%.

For FY2025, expectations point toward an annual dividend of ¥125, with further increases anticipated in the coming years. Market forecasts suggest a dividend approaching ¥150 within three years, supported by strong cash generation. Union Tool Co also paid ¥10 per share special dividends in both 2015 and 2021.

The interim dividend for FY2025 was raised from ¥45 to ¥60, and a higher year-end dividend is expected. Union Tool typically pays its final dividend in late March.

The payout ratio of 34% (FY2024) reflects a typical level for Japanese industrials and leaves ample headroom for future increases. Free cash flow is projected to rise significantly, with FY2027 estimates at ¥6.665 billion versus current dividend outlays of roughly ¥1.5 billion, indicating substantial capacity for continued distribution growth.

Ownership

The largest shareholder of Union Tool is Koei Company, holding 31% of outstanding shares. Koei Company operates in non-life insurance, real-estate management and rental activities. Union Tool also maintains a broad institutional and global shareholder base.

Sector & Competitors

Union Tool operates in the precision-tooling sector, serving industries such as electronics manufacturing, semiconductor packaging, industrial machinery and PCB fabrication. The company competes with both Japanese and global producers of micro-precision drilling tools, carbide tooling and high-performance industrial cutting equipment.

While a range of companies operate in standard tooling, Union Tool holds a strong position in high-end PCB drills and advanced substrate tooling, segments that are directly tied to next-generation electronics and AI-related demand. Its main competition comes from other precision tooling producers in Japan, Taiwan, China, Europe and the United States.

Summary

Union Tool continues to deliver rapid growth, supported by global demand for AI-related electronics and high-layer PCB manufacturing. With two consecutive years of double-digit revenue expansion, strong earnings momentum and consistently high operating margins, the company has built a solid platform for future growth.

The dividend has been raised repeatedly, most recently by 25%, and with a payout ratio of 34% and rising free cash flow, the company maintains capacity for further increases. While the estimated P/E ratio of 26 places the stock above historical levels, projected EPS growth of nearly 20% and expansion in data-center and AI-driven applications continue to support the company’s outlook within the precision-tooling sector.

Would you buy Union Tool? Let us know in the comments below this article!

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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.

Oriental Consultants Holdings (TSE: 2498) saw strong growth again this year, supported by another year of double-digit revenue expansion and one of Japan’s most impressive long-term dividend growth records. With the latest annual dividend at ¥120, a yield of 3.9% at today’s share price of ¥3,065, and a five-year average dividend growth rate of 42.5%, the company combines high dividend momentum with steady financial performance. Oriental Consultants also completed a 1:2 stock split, while maintaining its dividend policy.

Key Points

• Founded in 1957; major Japanese infrastructure & engineering consultancy with global footprint

• Dividend has grown 10 years in a row, averaging 42.5% per year over the past five years

• Latest dividend: ¥120; yield 3.9%; payout ratio 27.6%

• Revenue for FY2025 grew 10% to ¥95.365bn; ROIC over 21%; EPS up ~49% YoY

Company Overview

Oriental Consultants is a Japan-based engineering consultancy providing transportation planning, infrastructure design, urban development, water management, environmental services, disaster-resilience planning, and smart-city development.

Through its global subsidiary Oriental Consultants Global (OCG), the group operates across Asia, Africa, the Middle East, and Latin America, handling large-scale rail, road, bridge, airport, water-management, and urban-planning projects.

History

• 1957 – Company established as an engineering consultancy in Japan

• 1960s–80s – Expansion into transportation and public-sector infrastructure engineering

• 1990s – Start of overseas consulting activities

• 2014 – Establishment of Oriental Consultants Global

• 2010s–2020s – Growth in digital engineering, smart mobility (ITS), and disaster-management sectors

Financial Performance

The most recent annual results, published on 14 November, show another year of solid operational momentum. Group revenue rose 10.5% year-on-year to ¥95.365 billion, marking the second consecutive year of double-digit top-line growth. Profitability also strengthened materially, with operating profit increasing 20.5%, ordinary profit rising 43.6%, and net profit advancing 47.0% compared with the prior year.

Earnings per share reached ¥318, reflecting an almost 49% year-on-year increase, supported by strong project execution both domestically and overseas. Total orders climbed to ¥97.654 billion, up 9.7%, driven by steady demand for disaster-prevention and infrastructure-maintenance projects in Japan, as well as healthy activity on large-scale transportation and engineering programs overseas.

Oriental is one of the Dividend Heroes in 2025

With ROIC above 21% in FY2024 and valuation multiples that historically remain below 10x earnings, Oriental Consultants stands out as a highly efficient operator with a long track record of consistent profitability and balance-sheet discipline. The company currently has no analyst coverage, which is unusual for a business of its size and international footprint.

Dividend

Oriental Consultants has developed one of Japan’s most impressive long-term dividend profiles. The company has now raised its dividend for 10 consecutive years, and over the past five years the payout has increased at an average rate of 42.5% per year.

The latest annual dividend was ¥120, up from ¥87.5 the year before, and at the current share price of ¥3,065 this corresponds to a 3.9% yield. Despite this strong growth, the payout ratio for FY2025 stands at a moderate 27.6%, suggesting the company still has room to continue increasing shareholder distributions in line with profit expansion.
A 1:2 stock split was recently implemented, though management has maintained the underlying dividend policy unchanged. The combination of strong earnings growth and controlled payout levels has been a key driver of the company’s long-running dividend momentum. Actually, Oriental Consultants is one of the Japanese Dividend Heroes in 2025.

Ownership

An unusual and defining feature of Oriental Consultants is the role of its employees in the shareholder base. Staff members collectively hold 19.5% of all outstanding shares, making them the single largest shareholder group.
This structure creates a high degree of alignment between employees and long-term corporate performance, and it has contributed to the company’s disciplined capital allocation, sustained profitability, and stable organizational culture.

Sector & Peers

Oriental Consultants is a key player in Japan’s infrastructure-consulting sector. Domestic peers include:

• Nippon Koei Co., Ltd.

• CTI Engineering Co., Ltd.

• Pacific Consultants Co., Ltd.

Internationally, the group compares to AECOM , Arup, SMEC, and other global engineering consultants, especially in development-agency-funded infrastructure projects. Aecom recently announced another big dividend hike.

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Market Context

Japan’s infrastructure, disaster-prevention, and urban-development spending continues to provide a supportive environment. Overseas demand remains strong, especially in emerging markets. The company’s medium-term plan targets further expansion in smart-city, digital engineering (DX), O&M, and overseas design centers.

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.

Japan’s equity market saw a sharp reversal on Friday November 21, 2025, with semiconductor-related stocks leading the decline as global valuation concerns triggered heavy selling. Despite double-digit losses across many major names, several remain among the strongest performers of 2025 — a contrast repeatedly highlighted in recent DividendJapan coverage of OM2 Network, Kioxia, Tokyo Electron, Fujikura, Disco and others.

Key Points

• Nikkei 225 closed 2.4% lower at 48,625.88, ending the week down 3.5%.

• Broad semiconductor selloff: daily declines of 7–20% across major names.

• Many of the worst performers today still show exceptionally strong YTD returns.

• Global tech weakness accelerated after U.S. markets reversed sharply overnight.

• Japan faces added pressure from a weak yen, rising government bond yields and concerns over fiscal stimulus.

Market Overview

The Nikkei fell sharply on Friday as tech stocks sold off in response to a global reversal in risk sentiment. Overnight, Wall Street erased early gains after enthusiasm around Nvidia’s record earnings faded and valuation worries resurfaced, prompting the Nasdaq’s largest intraday swing since April.

Japan tracked the decline, with added pressure from domestic macro headwinds. The yen hovered near a 10-month low, long-term JGB yields were close to record highs, and the government prepared to announce a stimulus package exceeding ¥20 trillion, raising concerns about fiscal sustainability.

Largest Decliners — November 21, 2025

Even with today’s deep declines, many of these names remain top performers year-to-date:

• TSE: 7614 – OM2 Network Co Ltd: −20.2% to ¥1,516, yield 1.8%, +33.6% YTD
  (Featured earlier on DividendJapan for its strong rally.)

• TSE: 6857 – Advantest Corp: −12.1% to ¥18,315, yield 0.2%, +127.6% YTD

• TSE: 285A – Kioxia Holdings Corp: −11.5% to ¥10,030, yield 0.0%, +591.2% YTD
  (One of Japan’s hottest stocks in 2025; frequently covered on DividendJapan.)

• TSE: 9984 – SoftBank Group Corp: −10.9% to ¥17,090, yield 0.2%, +109.6% YTD

• TSE: 5803 – Fujikura Ltd: −8.3% to ¥17,325, yield 0.9%, +193.7% YTD
  (Recently profiled for its turnaround performance.)

• TSE: 6323 – Rorze Corp: −7.8% to ¥1,924, yield 0.8%, +37.7% YTD

• TSE: 6525 – Kokusai Electric Corp: −7.3% to ¥3,915, yield 0.9%, +99.0% YTD

• TSE: 8035 – Tokyo Electron Ltd: −7.1% to ¥30,180, yield 1.8%, +37.8% YTD
  (A recurring name in DividendJapan semiconductor coverage.)

• TSE: 6146 – Disco Corp: −7.1% to ¥43,930, yield 0.9%, +11.9% YTD

Macro Drivers Behind the Selloff

Several overlapping factors contributed to the sharp decline:

• Renewed valuation concerns in the global AI/tech sector despite Nvidia’s record quarter.

• The yen’s rapid depreciation, prompting fears of market intervention.

• Rising Japanese government bond yields, adding pressure to equity valuations.

• A massive new fiscal stimulus package, raising questions about the national balance sheet.

• U.S. macro data — including jobs figures — failing to clarify the interest-rate outlook.

• Lower liquidity heading into Japan’s holiday period, making markets more sensitive to global swings.

Conclusion

Friday marked one of Tokyo’s most volatile sessions of the autumn, driven largely by external valuation shocks and domestic macro concerns. Yet the broader picture tells a different story: several of today’s biggest losers remain among Japan’s best-performing stocks of 2025, especially Kioxia, Fujikura, Advantest and Tokyo Electron — a theme consistent with recent coverage on DividendJapan.com.

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.

OM2 Network Co, founded in 1958, began as a poultry farm before expanding into meat retail stores and later restaurant operations. The company now trades on the Tokyo Stock Exchange and has grown into a diversified meat retail and dining group operating under well-known brands such as Niku no Okubo and Center Farm. Since 2005, OM2 has been a subsidiary of S Foods Co., Ltd., which currently owns 48.9% of the company.

Despite a negative market backdrop, the stock surged nearly 20% today to ¥1,892, with no specific news explaining the sudden move.

Key Points

• Founded in 1958; evolved from poultry farm to meat retail and restaurant operator

• Subsidiary of S Foods since 2005 with 48.9% ownership

• Dividend growth has been stable to rising; latest annual payout ¥34 (+13.3% YoY)

• Market capitalization is only ¥13.4 billion (~USD 86 million)

OM2 Network operates a nationwide portfolio of meat retail stores and restaurants. Its main revenue comes from meat retail under the Niku no Okubo and Center Farm brands. The company also runs deli and restaurant businesses under names such as Hanaya Meisai, Yakiniku no Guyuta, and Japan-based outlets of Outback Steakhouse.
The company’s business model is anchored in essential consumer goods, with meat sales forming the core of its revenue. Restaurant and delicatessen operations complement this base, with the meat-retail segment accounting for the largest portion of total sales.

Recent Financial Performance

For the six months ended July 31, 2025, OM2 Network reported:

• Sales: ¥17.30 billion (+8.6% YoY)

• Operating profit: ¥542 million (-25.0% YoY)

• Recurring profit: ¥651 million (-18.9% YoY)

• Net profit: ¥404 million (-21.5% YoY)

• EPS: ¥60.70

For the fiscal year ending January 2026, the company forecasts:

• Sales: ¥35.50 billion (+8.3% YoY)

• Operating profit: ¥1.48 billion (+0.4% YoY)

• Net profit: ¥910 million (-17.2% YoY)

• EPS: ¥136.69

In the previous fiscal year, revenue increased from ¥32.109 billion to ¥32.778 billion. ROIC has ranged between 6% and 8% in recent years, while operating margin has been stable between 4.5% and 5.8%.

Dividend

OM2 Network pays one annual dividend each April, with the ex-dividend date typically falling at the end of January.

The latest dividend of ¥34 represents an increase of roughly 13.3% year-on-year, giving a yield of approximately 1.9% at a share price of ¥1,829.
The payout ratio for FY 2025 was 20.6%, up from 15.1% the year before, leaving room for potential future increases.

Ownership

Since 2005, OM2 Network has been part of S Foods Co., Ltd. (TSE: 2292), which now holds 48.9% of the company’s shares and integrates OM2 into its broader meat production and distribution ecosystem. There is currently no analyst coverage for OM2 or S Foods.

Market Context

Japan’s food retail and restaurant sector remains highly competitive, with cost pressures from raw materials, energy, and labor. Despite these challenges, OM2 continues to expand selectively, open new stores, refurbish existing ones, and maintain product safety and quality standards.

While today’s sharp share-price rise has no identifiable news trigger, the company’s stable performance, long operating history, consistent dividend growth, and low payout ratio may be attracting increased interest.

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.

Sumco Corporation (TSE: 3436), a leading Japanese silicon wafer manufacturer, saw its shares tumble 20% to ¥1,176 on Tuesday after releasing third-quarter results that missed sales targets but showed slight operating improvements. The stock has now turned negative for the year, following a steep 44% decline in 2024.

Key Points

• Sumco shares dropped 20% to ¥1,176 after Q3 results.

• Net sales: ¥99.1 billion (¥1.9 billion below forecast).

• Operating profit: −¥1.6 billion (improved ¥1.9 billion vs forecast).

• Dividend: expected cut to ¥20 per share for FY2025.

• Dividend yield: 1.4%; market cap: ¥411.8 billion.

Earnings Overview

For the third quarter of fiscal 2025, Sumco reported net sales of ¥99.1 billion, missing its forecast by ¥1.9 billion. Operating profit was −¥1.6 billion, an improvement of ¥1.9 billion versus projections, while ordinary profit and net income also came in better than expected at −¥2.6 billion and −¥3.9 billion, respectively.

The EBITDA margin reached 27.6%, beating expectations by 1.8 percentage points. However, for the fourth quarter, Sumco expects net sales of ¥100 billion and a wider operating loss of ¥10 billion, suggesting pressure will continue in the near term.

Dividend and Market Context

Sumco will pay a dividend of ¥20 per share for fiscal 2025, unchanged from last year. This marks the second consecutive year without growth, following a 62% reduction from the ¥81 per share paid in 2022. The current dividend yield stands at 1.4%, and the company remains heavily cyclical, reflecting the volatility of global wafer demand.

At a market capitalization of ¥411.8 billion, Sumco remains one of Japan’s key wafer suppliers alongside Shin-Etsu Chemical and GlobalWafers Japan.

Performance and Outlook

After two difficult years, the stock has been relatively flat in 2025 (−0.6% YTD) despite ongoing weakness in chip production volumes. Analysts expect a modest recovery of around 4% revenue growth in 2025 as inventory adjustments ease. The company’s balance sheet remains stable, though sentiment has clearly weakened across the semiconductor materials sector.

Analyst Sentiment

Analyst views have turned more cautious, with 2 strong buy, 7 buy, 5 hold, 1 sell, and 1 strong sell recommendations. After multiple dividend reductions and shrinking profits, investor confidence remains fragile, underscoring the cyclical nature of Sumco’s business.

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.

Lasertec (TSE: 6920), a leading Japanese manufacturer of semiconductor inspection systems, saw its shares gain after-hours following its latest earnings release. Despite forecasting lower revenue and an unchanged dividend, the market reacted positively as profits came in stronger than expected.

Key Points

• Lasertec (TSE: 6920) shares gained 4% after-hours, nearing ¥30,000.

• Company forecasts a 20% revenue decline for FY2026 (ending June 2026).

• Dividend maintained at ¥329 per share, unchanged from last year.

• Stock has doubled in two months and is up 75% year-to-date.

• FY2026 estimated P/E ratio: 36; market cap supported by ¥136 billion net cash ($900 million).

Earnings and Market Reaction

Lasertec Corporation (TSE: 6920), one of Japan’s most prominent semiconductor equipment makers, released earnings after the market close on Thursday. The results were initially received positively despite a cautious outlook.

The company — specialized in inspection and measurement systems used in extreme ultraviolet (EUV) photomask production and wafer process control — reported profit figures above expectations, even as revenue guidance fell below consensus. Lasertec now projects a 20% decline in sales for the fiscal year ending June 2026, compared with an average analyst estimate of a 16.5% decrease to around ¥210 billion.

Dividend and Valuation

Lasertec announced a planned dividend of ¥329 per share, the same as last year — marking the first time in years the payout has not been raised. Over the past decade, the company increased its dividend by an average of 40% per year, but that growth now pauses. The payout ratio remains steady around 30–35%, consistent with the sector.

At a share price of ¥28,410, Lasertec’s dividend yield is 1.2%, with two dividend payments per year (ex-dates in June and December).

Stock Performance

The company’s share price has seen an extraordinary recovery in 2025. After dropping 59% in 2024, Lasertec rebounded sharply and is now up 75% year-to-date, having doubled from ¥15,000 to nearly ¥30,000 in just two months.

Despite the weaker revenue forecast and flat dividend, investors remain enthusiastic — possibly due to the stronger-than-expected profit performance and the company’s leadership in EUV inspection technology.

Competitive Landscape

Lasertec operates in a highly specialized niche, holding a dominant market position in EUV mask inspection systems. Its main competitor, KLA Corporation of the United States, is also developing advanced EUV photomask inspection tools, but Lasertec remains the only supplier currently in full production of these systems.

The company maintains a solid financial position, with no debt and an estimated ¥136 billion in net cash projected for FY2026. Analysts expect growth to resume beyond 2026, forecasting a return to double-digit annual revenue increases.

Analyst Overview

Analyst sentiment is mixed, with 5 buy, 8 hold, and 3 sell recommendations. Given the strong rally and a forward P/E of 36, the stock trades at a premium to peers, though expectations for continued leadership in EUV inspection keep it firmly on investors’ radar.

Last month we already wrote an article about Lasertec when the stock traded below ¥20,000.

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.