As Japan-U.S. earnings season gathers pace, attention is turning to buying relatively underperforming stocks on dips. Five high-dividend stocks with yields above 4% were selected by a screener.
With earnings season for the Nikkei 225 and other markets approaching, investors are increasingly looking for buying opportunities in lagging stocks rather than stocks that have already risen. Using Rakuten Securities' Super Screener, five stocks meeting the following criteria were selected and featured as carefully selected high-dividend stocks: a dividend yield of at least 4.0%, large market capitalization, a decline of at least a specified level from the year-to-date high, and a share-price gain of at least 80% over 3 years.
Ishihara Sangyo Kaisha, Ltd. (4028, TSE Prime) may benefit from expanding demand for titanium dioxide, particularly from data centers, while structural changes in the agrochemicals business are affecting earnings. Full-year operating profit for the fiscal year ending March 2027 is expected to decline year on year, while annual dividends are projected at ¥130. The share price has risen sharply from its 2025 low but has recently entered a correction phase on expectations of lower earnings and other factors.
DOWA Holdings Co., Ltd. (5714, TSE Prime) focuses on nonferrous metals and recycling, and earnings remain solid despite the influence of metal prices and foreign-exchange movements. The company raised its full-year revenue and profit forecasts and expects an annual dividend of ¥338, with a payout ratio of approximately 40%. The share price has corrected after rising to a high level, and attention is focused on future zinc-market conditions and data-center investment.
Toa Corporation (1885, TSE Prime) is a construction company focused on port and marine civil engineering, with a high proportion of overseas construction work. Its full-year profit forecast for the fiscal year ending March 2027 remains unchanged at ¥21.1 billion, while the order environment is considered favorable. Annual dividends are projected at ¥77, with a plan to target a DOE minimum level of approximately 40%. The share price is recovering from its low, although trends in long-term interest rates and concerns over dilution from convertible bonds remain factors.
Shimizu Corporation (1803, TSE Prime) is one of Japan's major general contractors, and improved profitability in domestic building and civil-engineering operations is expected to lift earnings. Full-year profit is forecast at ¥153.0 billion and dividends at ¥77. The share price is in a correction phase after coming under pressure near its high, but gross margins are expected to remain elevated as data-center and semiconductor-factory projects expand.
Takasago Thermal Engineering Co., Ltd. (4914, TSE Prime) operates in fragrances and fine chemicals. Although rising raw-material costs have at times reduced its gross margin, earnings are expected to improve as profitability in the European and U.S. markets normalizes. The company targets annual dividends of ¥52, DOE of at least 3.0%, and a payout ratio of at least 30%. The share price appears significantly undervalued over the long term, although it has entered another correction phase after rebounding from its 2025 low.