A feature introducing 10 small- and mid-cap stocks with high dividend yields has been published. Drawing on more than 25 years of experience as a Japanese equity fund manager, the author suggests that a period may be approaching in which small- and mid-cap stocks become relatively more attractive.
The author, who believes a buying opportunity is emerging, particularly in small- and mid-cap high-yield stocks, introduces 10 companies offering both attractive yields and strong earnings. The article presents the rationale for increasing investment appetite for small- and mid-cap stocks under the current market conditions, along with a list of stocks.
The author's career is described as including experience managing public pension assets, investment trusts and overseas funds, and the article also discusses the importance of managing investments so as not to underperform the TOPIX.
Against the backdrop of market conditions, the article suggests that the trend of large-cap outperformance that has continued since 2020 may shift toward small- and mid-cap outperformance from 2025 onward. It proposes a strategy focused on small- and mid-cap stocks with strong earnings in the TSE Prime and Standard markets.
The reasons cited for this potential shift include the cyclical nature of historical market patterns, the reassessment of small- and mid-cap stocks during periods of rising interest rates, and TSE governance reforms that are promoting greater disclosure of shareholder value. These factors point to a possible direction for future stock selection.
Finally, the article lists 10 small- and mid-cap stocks that the author currently wants to buy, highlighting companies with solid earnings foundations, high forecast dividend yields and the potential to post record-high profit for the current fiscal year.