Transform Your Finances: How Earning 450,000 Yen Monthly in Dividends Can Make You a Millionaire in 20 Years

Become a “billionaire” by diversifying your investments between high-dividend stocks in Japan and indexes in the U.S….

On September 18, the Federal Reserve Board (FRB), the U.S. central bank, announced the first policy rate cut in four and a half years. The U.S. stock market rallied on the news, and the Japanese stock market is also making a strong comeback. As the market looks for a place to settle down, what kind of stocks should we be targeting now?

We asked Mr. Nanoh, who became a “billionaire” by investing mainly in “high-dividend stocks” with high dividend yields while working as a company employee.

He was in the red for the first 6 years and has been in the black for 15 consecutive years by targeting high dividend stocks. ……

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• Profile: A part-time investor with over 20 years of investment experience. He started investing in stocks when he was a freshman in college, but was in the red for the first six years. After targeting high-dividend stocks in 2008, he has been in the black for 15 consecutive years, reaching 100 million yen in March 2009. The average annual growth rate of his assets over the past 10 years has been about 19%. He is also the author of the book, “Bakudaimasu” Kabushiki Ga Sukeroku” (KADOKAWA), which is taught by a billionaire who receives an “unearned income” of 410,000 yen per month.

10 million yen turned into 100 million yen in 10 years. …… “High Dividend Stock” investment pays out over 5.5 million yen in total dividends per year!

Mr. Nonono’s investment style is to invest in high-dividend stocks in Japan and in U.S. indexes (indices). In particular, his investment in high-dividend stocks, which he began in 2008, has recorded stable results over a long period of time, and his assets reached 10 million yen in 2011 and exceeded 100 million yen in 2009, making him a billionaire. His current dividend income amounts to 450,000 yen per month, or 5.5 million yen per year.

So, what kind of stock is a high dividend stock?　First, let us review the basics. A stock dividend is a distribution of profits by a company to its shareholders. Shareholders receive dividends from the company in proportion to the number of shares they own. Dividends are not always paid and may not be paid in the event of a loss or depending on the company’s policies. Dividends are usually distributed at the end of the fiscal year and are paid once a year (year-end dividend) or twice a year (interim and year-end dividends).

Figures derived from the rule of thumb: …… Dividend yield “4% or more” is the standard for investment targets.

And what is a high dividend stock?

The dividend yield is the ratio of the annual dividend yield to the share price.

The dividend yield is the ratio (%) of the annual dividend to the share price, and is calculated by dividing the dividend per share by the share price x 100. For example, for a stock with a share price of 1,000 yen and an annual dividend of 30 yen, the yield is 30 yen ÷ 1,000 yen × 100 = 3%.

There is no clear definition of a high dividend stock, such as a dividend yield of more than a certain percentage. However, the average dividend yield of stocks included in the Nikkei Stock Average is currently around 2%, so I think it is fair to say that stocks with a dividend yield of 3% or more are high-dividend stocks.

In fact, however, Mr. Nono targets dividend yields of 4% or more as an investment target.

However, he actually targets stocks with dividend yields of 4% or higher. “It is difficult to explain the rationale behind the 4% or higher standard because it is a technical matter, but one thing I can say is that since I set the standard at 4% or higher, I have been able to generate stable earnings,” he said. I can say that this figure was derived from my experience.

Another important condition is that earnings have been steadily increasing. The basis of dividends is the profit earned by the company. If earnings are on an upward trend, there is a greater likelihood that the company will increase its dividend.