This article examines the current dividend yields, future shareholder-return policies and growth drivers of UBE and Exedy, 2 Japanese high-yield stocks attracting investor attention. UBE has a group-company listing planned, while Exedy has indicated a stable dividend policy and a high payout ratio.
Diamond Zai has selected UBE (4208) and Exedy (7278) from among current high-yield stocks, highlighting their dividend yields of more than 5% and the potential for future dividend increases. UBE's current dividend yield is said to be approximately 5.08%, compared with approximately 5.97% for Exedy, and both companies stand out for clearly stating their dividend policies. UBE positions the expansion of high-value-added products, including separators for lithium-ion batteries, as a growth driver, and investor attention is focused on fundraising through the listing of a group company and stronger shareholder returns. Exedy is targeting a total payout ratio of 100% over two years, and its dividend is expected to increase as demand for parts for internal-combustion engines remains stable.
Regarding UBE, a Diamond Zai analyst has analyzed the company's dividend policy as being raised from a DOE of 2.5% to 3.5%, with a target of reaching 4.0% at an early stage. The view has been expressed that funds circulating through the group's listings will be directed toward growth investment. Regarding Exedy, commentators have praised the combination of stable shareholder returns and growth, citing the expansion of high-margin replacement and repair demand and an investment in a Turkish drone-related company.
As part of its outlook for the market, the article discusses sector trends, including AI and semiconductor stocks, as well as ongoing areas of interest among high-yield stocks, identifying the performance of UBA and Exedy as a major focus. The article is based on data as of 3 August, and the figures may change depending on future earnings results and progress with the listing plans.