Just Keep Buying Even in Volatile Markets How Dividend Stock Investing Turns Beginners into Millionaires

Global stock markets have been fluctuating sharply due to conditions in the Middle East and other factors, and many individual investors are struggling with investment timing. In the midst of this, there is a 100-million-yen investor who has gained support for his ultimate reproducibility that does not rely on talent or luck.

What he advocates is not simply high dividends, but a rational investment method aimed at dividend-growth stocks whose dividends continue to increase over time. This article explores the concrete strategies and stock-picking criteria for steadily accumulating profits without being swayed by market waves.

【Profile: Haito Tarō】

He started investing in stocks in 2006 while still a student. He made profits buying at the bottom after the “Livedoor Shock,” but suffered a major blow in 2008 during the “Lehman Shock,” losing more than one-third of his assets. From this experience, he rediscovered the value of dividends that continue even when stock prices fall and shifted to dividend stock investing.

Currently, 90% of his holdings are dividend-growth stocks, forming his portfolio. His time of becoming a “okuribito” (100-million-yen investor) and the transition of his asset size are not disclosed. His books include The Best Stock Investment That Brings in 1 Million Yen in Annual Dividends and The Ultimate Stock Investment for Earning 2.4 Million Yen in Annual Dividends Starting with the New NISA, both bestsellers. He has about 248,000 followers on X (formerly Twitter).

The 100-million-yen investor buys steadily

After the peak of dividend and shareholder benefit investing at the end of March, the stock market entered a new fiscal year in April. However, due to ongoing conflicts in the Middle East, global stock prices continue to fluctuate daily. Many individual investors are unsure whether this is a local bottom or whether further declines are coming.

However, Haito Tarō, who became a 100-million-yen investor through dividend stock investing, says that it is important to keep buying steadily without being influenced by stock price or market movements. His investment method is known for its extremely high level of reproducibility, and he has about 250,000 followers on X (formerly Twitter).

Beware of the high dividend trap

Even during weak economic conditions, Haito Tarō carefully checks financial statements and mid-term management plans in order to find stocks that generate solid profits and offer high dividend yields. However, he clearly distinguishes his style not as high-dividend stock investing, but simply dividend stock investing or dividend-growth stock investing.

“Thinking that a stock has a high dividend yield just because it pays high dividends is dangerous. There may be cases where the stock price is depressed for some reason, or where excessive dividends are being paid relative to profits. Even if the dividend yield is temporarily high, there is no guarantee that the dividends can be sustained. After that, business performance may deteriorate, leading to dividend cuts or elimination, and the dividend yield may end up dropping significantly.”

In fact, there are many cases where companies increase dividends excessively in order to meet Tokyo Stock Exchange requirements and attract more shareholders, only to later announce dividend cuts and see their stock prices fall sharply. Focusing only on dividend yield can lead investors to choose companies with excessive shareholder returns.

“Even if the current dividend yield is not high, companies that have strong earning power and can stably pay dividends are more likely to increase dividends in the future. When examining financial statements and mid-term plans, you should focus on that room for growth. My investment strategy is to collect as many stocks as possible with strong growth potential and the ability to consistently increase dividends.”

Regarding timing:

“If you wait for the right time thinking you’ll buy when prices fall, you will never move forward. What I often say is: buy immediately when prices are down, buy without hesitation when they are flat, and even when prices are high, have the courage to buy. When you have funds available for stock investment, you should build the habit of buying without hesitation and increase your number of shares.”

When markets become unstable, it is common for investors to wait for prices to fall, only to see them rise instead. No one knows whether prices will go up or down. If that is the case, trying to time the market is a waste of time. Instead, effort should be focused on finding stocks that consistently increase dividends.

Over time, accumulating dividends, enjoying dividend increases, and reinvesting those dividends to buy more shares gradually reduces the impact of the original purchase price and yield on overall performance.

6 criteria for identifying dividend-growth stocks

So how can you find stocks that are expected to increase dividends in the future? There is a very clear answer to this as well.

“They are stocks with solid business performance, rising earnings per share, and a positive attitude toward returning profits to shareholders. As specific criteria, I have listed the following six points.”

【Haito Tarō’s “Dividend-Growth Stock” 6 Criteria】

① Large-cap companies with a market capitalization exceeding 1 trillion yen

② Well-known companies that anyone has heard of

③ Companies that are industry leaders or top-tier players

④ Companies in industries that are essential to society

⑤ Companies in industries with high barriers to entry

⑥ Companies with high profit margins

Industries that fall under ④, ⑤, and ⑥ include banking and finance, trading companies, insurance, and telecommunications, among others.

Without relying on special talent or complex strategies, Haito Tarō became a 100-million-yen investor by steadily buying well-known companies that everyone recognizes. This is his dividend-growth investing approach. A detailed discussion of specific three notable stocks (named) that meet these six criteria and are expected to contribute to future earnings—though not currently viewed as catalysts—is available in the paid version of FRIDAY Subscription.

■ Here is Dividend Taro’s X (formerly Twitter) account