The Nikkei 225 High Dividend Yield Stock 50 Index comprises stocks selected for their dividend yields, but has the ironic feature that constituents can be excluded when their share prices rise. The regular June rebalancing also resulted in the exclusion of a top-tier company.
The Nikkei 225 High Dividend Yield Stock 50 Index is said to have outperformed the Nikkei 225 over the long term in terms of average gains including dividends. The index is calculated by Nikkei Inc. and generally comprises 50 constituents, using a weighting methodology that emphasizes dividend yield. Development began in January 2017, the base date is December 2001 and the base value is 10,000. Regular rebalancing is conducted once a year, at the end of June.
However, the index has also been described as a collection of companies that have “given up on growth.” Under its rules, as share prices rise too far, dividend yields fall, resulting in high-quality stocks being excluded. In fact, Mitsubishi UFJ Financial Group and Tokio Marine Holdings were excluded in the regular June 2025 rebalancing.
Constituents of the index include INPEX, Astellas Pharma, Japan Tobacco, Sumitomo Mitsui Financial Group and Takeda Pharmaceutical. As of August 2026, the index had approximately 47 constituents.