Amidst a backdrop of surging indices, Japan's stock markets have shown remarkable strength in July 2024, with the Nikkei 225 and TOPIX indices reaching all-time highs. This robust performance sets an optimistic stage for investors considering Japanese dividend stocks, which can offer potential stability and steady income in a flourishing market environment.

Top 10 Dividend Stocks In Japan

Click here to see the full list of 390 stocks from our Top Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Tohokushinsha Film

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

Overview: Tohokushinsha Film Corporation, based in Japan, operates as a media business company with a market capitalization of approximately ￥74.43 billion.

Operations: Tohokushinsha Film Corporation generates its revenue primarily through media-related activities in Japan.

Dividend Yield: 4.7%

Tohokushinsha Film has exhibited a volatile dividend history over the past decade, with recent increases and subsequent decreases in its payout. Despite this, dividends are supported by a cash payout ratio of 63.4% and an earnings coverage at 87.2%, indicating reasonable sustainability from its cash flows and profits. The stock trades at a significant discount to estimated fair value, which might attract value investors despite its high share price volatility and inconsistent dividend payments. Recent corporate actions include a stock split and regular dividend payments scheduled, reflecting some level of commitment to returning value to shareholders.

• Dive into the specifics of Tohokushinsha Film here with our thorough dividend report.

• Insights from our recent valuation report point to the potential undervaluation of Tohokushinsha Film shares in the market.

Human Holdings

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

Overview: Human Holdings Co., Ltd. operates in human resources, education, nursing care, and other sectors both in Japan and internationally, with a market capitalization of approximately ￥16.62 billion.

Operations: Human Holdings Co., Ltd. generates revenue from its operations in human resources, educational services, and nursing care sectors.

Dividend Yield: 4%

Human Holdings has increased its annual dividend to JPY 62.50 per share from JPY 27.00, with a future projection of JPY 64.00 for next year, reflecting a positive trend in shareholder returns. Despite a top-tier dividend yield of 4%, the company's dividends show low coverage by earnings and cash flows with payout ratios of 16.2% and 20.7% respectively, indicating sustainability concerns given its erratic dividend history over the past decade. However, it maintains an attractive price-to-earnings ratio at 7.7x, below the market average.