Toyota Motor Corporation, NTT, Mitsubishi UFJ Financial Group, Shin-Etsu Chemical and KEYENCE are compared by indicator as the “strongest Japanese stocks,” with their strengths in earnings, dividends and growth potential outlined. The article explains how to choose stocks and approach diversification according to investment objectives.
The 5 companies are each considered to have strengths in different indicators, and their earnings and shareholder returns are compared based on financial results materials for the fiscal year ending March 2026. Toyota has a large market capitalization, while NTT is expected to continue raising its dividend. Mitsubishi UFJ is benefiting from higher interest rates, Shin-Etsu Chemical holds the world’s top market share, and KEYENCE demonstrates high profitability.
The figures in the table are based on financial results materials and shareholder return materials for the fiscal year ending March 2026, and the 5 companies’ annual dividend payments, both actual and forecast, are also compiled. The specific indicators cited include Toyota’s operating revenue and operating income, NTT’s consecutive dividend increases, UFJ’s net income, Shin-Etsu Chemical’s operating margin, and KEYENCE’s profit margin.
The 5 companies’ advantages and points to watch include their dividend policies, outlook for future earnings, exposure to interest-rate trends, and high equity ratios, with the risks and opportunities of each stock presented alongside them.
For investment objectives and portfolio construction, the article proposes combining stocks that are increasing their dividends when dividend income is the priority, highly profitable stocks when seeking capital gains, and stocks with high equity ratios when stability is the priority.
In summary, the 5 companies have different strengths, and combining them according to investment objectives and diversifying into overseas assets and bonds are considered ways to reduce risk.