5 “Japanese Dividend Aristocrats” You Need to Know (Better Than US Options?)

Key Takeaways

• ✅ The “Buffett Effect”: Warren Buffett has already invested heavily in Japan. The next wave is seeking “Dividend Growth” stocks.
• ✅ Cheaper Valuation: While US aristocrats like Coca-Cola (KO) or P&G (PG) trade at P/E 20x-25x, their Japanese counterparts often trade at P/E 10x-15x.
• ✅ Currency Bonus: With the historically Weak Yen (JPY), US investors can currently buy these high-quality assets at a massive “currency discount.”

Introduction

Are you tired of buying US stocks at all-time highs? As a smart investor, you know the famous “Dividend Aristocrats” like Procter & Gamble (PG), Coca-Cola (KO), or Johnson & Johnson (JNJ). They are fantastic businesses, but let’s be honest—they are expensive right now.

But what if I told you there is a “hidden market” where you can buy companies with the same track record of dividend growth, but at half the valuation?

Welcome to Japan.

While Wall Street focuses on tech giants, Japanese companies have quietly undergone a shareholder-friendly revolution. Here are the Top 5 “Japanese Dividend Aristocrats” that every US income investor should know before the rest of the market catches on.

1. Kao Corporation (4452)

• The “Procter & Gamble” of Japan
• Consecutive Dividend Hikes: 35 Years (No.1 in Japan)
• Yield: ~2.5%
• Ticker: TYO: 4452 / US OTC: KAOUY

If you like P&G (PG), you will love Kao. Kao is the absolute king of Japanese dividends. It holds the record for the longest streak of consecutive dividend increases in Japan (35 years). They manufacture daily necessities like laundry detergent, soap, and cosmetics—business models that are recession-proof.

Why buy now? While P&G often trades at a P/E of around 24x-25x, Kao has recently faced headwinds from raw material costs, pushing its valuation down to attractive levels. It is the safest “buy-and-hold” stock in Japan for conservative investors.

2. SPK Corporation (7466)

• The “Genuine Parts Company” of Japan
• Consecutive Dividend Hikes: 27 Years
• Yield: ~3.0%
• Ticker: TYO: 7466

Do you know Genuine Parts Company (GPC), the owner of NAPA Auto Parts? SPK is the Japanese version. They are a specialized trading company for automobile parts and industrial vehicle components. It might sound like a “boring” business, but boring is beautiful in investing. They generate steady cash flow and have hiked dividends for 27 years straight, ignoring economic bubbles and crashes.

Hidden Gem Alert: Unlike GPC, SPK is a small-cap stock with very little coverage from Wall Street analysts. This is a classic “Hidden Gem” that you can buy before institutional investors crowd in.

3. Mitsubishi HC Capital (8593)

• The High-Yield Monster
• Consecutive Dividend Hikes: 26 Years
• Yield: ~3.8% – 4.2% (Varies by price)
• Ticker: TYO: 8593 / US OTC: MIUFY

If you are looking for Income (High Yield), this is your winner. Mitsubishi HC Capital is a massive leasing and finance company (similar to Synchrony Financial or parts of GE Capital), backed by the Mitsubishi Group.

Despite having a 26-year growth streak, the stock often yields nearly 4.0%. In the US, finding a Dividend Aristocrat with a 4% yield is extremely rare. In Japan, it’s available right now. Their business portfolio is well-diversified, ranging from aviation leasing to renewable energy projects.

4. Ricoh Lease (8566)

• The “Compounder”
• Consecutive Dividend Hikes: 29 Years
• Yield: ~3.5%
• Ticker: TYO: 8566

Another leasing company, but with an incredible track record. Ricoh Lease has raised dividends for 29 consecutive years. They are part of the Ricoh (printer/copier) group but operate independently in financial services and vendor leasing.

Why is this stock special? It has a history of being a “Compounder.” The stock price has steadily risen over the long term alongside dividends. With a shareholder benefit program (Quo Cards) popular in Japan, they are very conscious of returning value to investors.

5. USS Co., Ltd. (4732)

• The “Copart” of Japan
• Consecutive Dividend Hikes: 25+ Years
• Yield: ~2.8%
• Ticker: TYO: 4732 / US OTC: USSJY

Do you know Copart (CPRT) in the US? USS is the Japanese dominant leader in used car auctions. They have a massive “Economic Moat” (monopoly-like status) because they control the physical and digital auction sites where dealers buy and sell cars.

Because they take fees from every transaction, they have high profit margins and virtually zero debt concerns. This is a “Cash Cow” business that keeps rewarding shareholders regardless of the macro economy.

Conclusion: Why Invest in Japan Now?

These 5 companies are just the tip of the iceberg. The biggest advantage for you, a US investor, is the Exchange Rate.

Because the Yen is historically weak against the Dollar, you are essentially getting a 30-40% discount on these world-class assets compared to a few years ago.

Don’t wait until the Yen gets strong again. Check these tickers in your brokerage account today.

• Disclaimer: This article is for educational purposes only and does not constitute financial advice. The author may hold positions in the stocks mentioned.

DividendDan | Japan Stocks

Independent Research on Japanese Dividend Stocks

Hi, I'm DividendDan, a Tokyo-based individual investor focused on researching Japanese dividend and value stocks. I share market insights based on publicly available data, personal research, and long-term investment perspectives to help global investors better understand the Japanese stock market. All information provided on this site is for educational purposes only and should not be considered financial advice.