Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Land of the rising dividends

AJ Bell is an easy to use, award-winning platform Open an account
We've accounts to suit every investing need, and free guides and special offers to help you get the most from them.
You can get a few handy suggestions, or even get our experts to do the hard work for you – by picking one of our simple investment ideas.
All the resources you need to choose your shares, from market data to the latest investment news and analysis.
Funds offer an easier way to build your portfolio – we’ve got everything you need to choose the right one.
Starting to save for a pension, approaching retirement, or after an explainer on pension jargon? We can help.
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Some of the world’s best dividend opportunities can be found in a surprising place. While investors might presume Silicon Valley’s tech hub, London’s financial centre or exciting emerging markets might provide top payout options, one of the winners is that old electronics industrial workhorse Japan, according to research by investment bank UBS.
The study finds that Japanese companies rank highly for dividend growth, safety and value when compared to other global regions. The data shows average dividend growth among Japan’s equities is running at 12.4%, more than twice the pace of emerging markets or the Asia ex-Japan area, with US (6.1% average) and Europe (6.9%) also trailing.
Interestingly, Japan also ranks top when it comes to income security. The likelihood of declines in Japanese corporate payouts runs at 7% versus the 7.2% risk of a dividend cut to US equities. The figure stands at 10.3% in Europe.
Yet this high growth and low risk combination has not resulted in expensive valuations for Japan’s dividend equities, according to the UBS study.
‘There are three regions where yield appears cheap,’ the research states, going on to name ‘emerging markets, Japan and Europe.’
Three of the best performing Japan focused funds this year include First State Japan Focus Fund (GB00BWNGX432), Fidelity Institutional Japan (GB0003371399) and Baillie Gifford Japanese (GB0006011133), according to performance data from Morningstar.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
Our website uses cookies to give you a better browsing experience.
You can choose to accept all cookies, or control which we use by clicking 'Manage cookies'. To learn more, read our cookie policy.