Stocks among the largest by market capitalization with high dividend yields are attracting attention after results for the April-June 2026 quarter significantly exceeded market expectations. Many offer dividend yields above 3%, with some exceeding 5%.
Japanese companies' results for the April-June 2026 quarter are expected to significantly exceed market expectations for revenue and all profit measures, setting a new quarterly record. The main drivers are the semiconductor, electrical equipment and precision equipment sectors, supported by the global expansion of generative AI-related investment, and foreign-exchange gains at exporters resulting from the weaker yen. Corporate profit margins also reached record-high levels.
Against this backdrop, upward revisions to initial forecasts for ordinary profit growth toward double-digit rates are becoming more prevalent. Profit growth of slightly over 10% is expected for fiscal 2025, followed by growth of around 10% in fiscal 2026. Some views suggest that the new forward P/E could remain around 18 times even with the Nikkei 225 at elevated levels.
Examples of stocks among the largest by market capitalization with high dividend yields include Sony Financial Group, Daito Trust Construction, Subaru, JFE Holdings, Honda Motor, Sekisui House, Isuzu Motors, Kawasaki Kisen Kaisha, DENSO, Nippon Yusen, Daiwa House Industry, Japan Tobacco, Dai-ichi Life Holdings, Hulic, SoftBank, Takeda Pharmaceutical, Nomura Holdings, Daiichi Sankyo, Mitsubishi HC Capital and Nippon Steel. Dividend yields exceed 3%, and in some cases exceed 5% for the highest-yielding names.
As strong earnings are confirmed and attention focuses on efforts to secure dividend entitlements, investors were also introduced to strategies using single-stock options, including covered calls and target buying.