Japan’s Dividend Yields are Higher than S&P 500's

Investors should not be scared off by the Bank of Japan cutting interest rates, as Abenomics' aggressive policies will benefit income investors

Karen Kwok 15 September, 2016 | 2:33PM

Dividends yields from Japanese stocks are higher than those offered by the S&P 500 – and they will continue to rise, according to JP Morgan.

Speaking at an investor conference in London this week, Nicholas Weindling, co-manager of the JP Morgan Japanese Investment Trust said share buybacks and dividend pay-outs among Japanese companies were growing thanks to strong cash reserves. Japanese listed companies’ cash holdings are currently twice the size of those in the UK – meaning double the potential for dividends or share buybacks.

Japan Stocks Have Double the Cash of UK Companies

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aberdeen Asia Pacific and Japan Eq A Acc279.54 GBP0.15
Invesco Japan UK Acc357.50 GBP-0.54
Legg Mason IF Japan Equity X Acc5.28 GBP-0.71
Schroder Tokyo A Acc £3.33 GBP-0.74

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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