【Japanese Stocks】2 high-dividend stocks whose earnings and dividends are set to grow this and next fiscal year: both offer yields of around 5%, with GUNZE forecasting a 10-fold increase in net income from the previous fiscal year and Daicel forecasting a 3-fold increase (Diamond Zai)

GUNZE LIMITED (3002) and Daicel Corporation (4202) are cited as 2 stocks that meet the criteria for high-dividend stocks. Their current dividend yields are said to be around 5%, and both are expected to deliver strong earnings growth in the current and next fiscal years.

GUNZE LIMITED is a major innerwear manufacturer. Excluding the structural reform expenses recorded in the previous fiscal year, the company's current-year net income is planned to be more than 10 times the previous year's level. Analysts also forecast substantial earnings growth for the next fiscal year, with net income expected to reach just under ¥7 billion. The company has set a target of maintaining a total payout ratio above 100% until it achieves an ROE of 8%.

Daicel Corporation manufactures automotive airbag components. Its current-year net income is expected to increase by 214%, followed by 23% growth in the next fiscal year. The company has adopted a progressive dividend policy, and its dividend yield of approximately 5% is attractive. With sales volumes of its core high-performance plastics expected to increase and the impairment loss recorded in the previous fiscal year no longer weighing on results, current-year net income is expected to be more than 3 times the previous year's level.