Join our community of smart investors

Cash-rich Japanese companies are increasing dividends

Richard Aston tells Emma Agyemang how he chooses shareholder-friendly companies
Cash-rich Japanese companies are increasing dividends

Since the global financial crisis, investing in Japanese companies has changed dramatically, according to Richard Aston, manager of CC Japan Income & Growth Trust (CCJI).

“That was the first time we started identifying Japanese companies with dividends that were comparable, if not superior, to the international peer group,” he says. “Companies were awash with cash and took the decision to distribute more of that cash to their shareholders, displaying a very different attitude to what they would [have done] 10 or 15 years before that.”

The ultra-low interest rates brought in as part of measures to stimulate the economy led to pitiful saving rates. This has served to encourage Japanese companies to pay out more dividends to satisfy and create investor demand, and in turn boost their share prices.

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in