The "Nikkei High Dividend Stock 50" is popular in the new NISA era. It is explained that the index excludes companies whose share prices have risen too far, and that its suitability as an investment depends on the investor's stage of life.
The Nikkei High Dividend Stock 50 Index has maintained an average annual gain including dividends in the 13% range, outperforming the broader market over the long term. This has led to views that it is attractive to people who prioritize stable income after retirement.
However, some see the sharp rise in share prices in recent years as the result of external factors, particularly share buybacks and dividend increases prompted by the TSE's request for companies to improve capital efficiency. The index is described as being fundamentally focused on high dividends rather than growth.
It is said that investors need to understand that the index offers high dividends precisely because substantial share-price gains are not normally expected. Some also argue that younger investors should consider investing in growth stocks from a long-term investment perspective.
Whether it is worth holding this index for the long term ultimately depends on how it is used at each stage of life.