Transform Your Finances: How Earning 450,000 Yen Monthly in Dividends Can Make You a Millionaire in 20 Years
This time, we asked Mr. Nanonano to pick out three stocks. In addition to dividend yield and business performance, he also considered the stock price to be undervalued and the company’s position as a leader in its industry.
The most common indicators used to determine whether a stock is undervalued are PER (Price Earnings Ratio) and PBR (Price to Book Value Ratio), and I use each of these as a reference.
In addition, companies that rank first in their industries have several advantages over companies that rank second or lower, such as greater product and service development and marketing capabilities, as well as brand power, making them more likely to be chosen by customers.”
The following is a list of three such companies.
Honda] (stock code: 7267)…aggressive in returning profits to shareholders, including dividends
Honda (Honda Motor Co., Ltd.) is the world’s seventh largest automaker, but the world’s leading manufacturer of motorcycles.
In FY3/2011 and FY3/2012, the company allocated about 50% of its net income to dividends and share buybacks, and has been aggressively returning profits to shareholders. For FY3/25, the company’s forecast is for a decrease in profit, but analysts’ estimates are for an increase in profit. The assumed exchange rate is set at 140 yen to the dollar on average for the full year, which is a strong yen level, so there is a good possibility that the company will increase its profit for the full year.
SBI Holdings] (Stock code: 8473)…Big benefits in a “world with interest rates
A comprehensive financial services group with banks, securities companies, and insurance companies under its umbrella. SBI Securities, a member of the group, is the largest online securities company and has the largest number of securities accounts in the industry, including those of major securities companies.
With the Bank of Japan taking a stance to continue tightening monetary policy and raising interest rates, there is wide scope for the company to benefit from interest income on bank mortgages and margin transactions at securities companies.
Dai-ichi Kosho (stock code: 7458)…attractive for its substantial yield on shareholder benefits.
The largest manufacturer of commercial karaoke equipment and karaoke rooms. In addition to “Big Echo” and “Karaoke Mac” karaoke rooms, the company also operates a number of restaurants.
The dividend yield is in the low 3% range, but if the shareholder benefits are converted into a yield, the yield is more than 6%. However, in order to receive the shareholder benefits, shareholders must hold at least 200 shares. The company does not pay an interim dividend, but shareholders receive a special benefit coupon (worth 5,000 yen) at the end of the interim period.
■Reading of “dividend yield” and “earnings” derived from empirical data: ……. For more detailed information on Nanonano’s high-dividend stock investment methods, please refer to the paid version of “FRIDAY Subscription.
Click here for the blog “Nanonano’s Investment Memo on High Dividend Stocks”.
Interview and text： Kenji Matsuoka
After working as a money writer, financial planner, and market analyst for a securities company, he became independent in 1996. He writes articles on finance and asset management mainly for business and economic magazines. Author of "A Textbook for the First Year of Robo-Advisor Investing" and "Understanding with Rich Illustrations! Cashless Payment Book".
