3 Asian Dividend Stocks To Watch With Up To 3.5% Yield

As the Asian markets navigate a landscape marked by geopolitical developments and fluctuating economic indicators, investors are increasingly looking at dividend stocks as a potential source of steady income. In this environment, selecting stocks with solid fundamentals and reliable dividend payouts can be particularly appealing for those seeking to mitigate volatility while capitalizing on growth opportunities.

Top 10 Dividend Stocks In Asia

Click here to see the full list of 1029 stocks from our Top Asian Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Daiichi Sankyo Company, Limited is a pharmaceutical manufacturer and seller operating in Japan and internationally, with a market cap of ¥5.11 trillion.

Operations: Daiichi Sankyo Company generates revenue primarily from its Pharmaceutical Operation, amounting to ¥2.22 billion.

Dividend Yield: 3.6%

Daiichi Sankyo’s dividend yield is slightly below the top 25% of dividend payers in Japan, with a history of stable and growing payments over the past decade. However, concerns arise as dividends are not covered by free cash flows despite a reasonable payout ratio. Recent earnings showed increased sales but decreased net income, which might impact future dividend sustainability. Strategic partnerships and product approvals, like Vanflyta’s commercialization in China, could bolster revenue streams.

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Toukei Computer Co., Ltd. operates in Japan, providing system design, development, and operational solutions for various industries and businesses, with a market cap of ¥116.08 billion.

Operations: Toukei Computer Co., Ltd. generates revenue through its expertise in system design, development, and operational solutions tailored for diverse industries and businesses within Japan.

Dividend Yield: 3%

Toukei Computer’s dividend yield of 3.03% is below the top 25% in Japan, yet it boasts a decade of stable and growing dividends. The payout ratio stands at a sustainable 61%, with cash flows also covering dividends at 66.6%. Despite recent share price volatility, earnings grew by 18.2% last year, supporting dividend reliability. Upcoming Q2 results may provide further insights into its financial health and potential impact on future payouts.

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Ichikoh Industries, Ltd. develops, manufactures, and sells lamps and other automotive parts to automobile manufacturers and parts manufacturers both in Japan and internationally, with a market cap of ¥549.90 billion.

Operations: Ichikoh Industries, Ltd. generates its revenue primarily from the automotive parts segment, which accounted for ¥121.32 billion.

Dividend Yield: 3.2%

Ichikoh Industries’ dividend yield of 3.15% trails the top quartile in Japan, with a history of volatile payments over the past decade. However, its payout ratio is low at 20.9%, and cash flows cover dividends comfortably at 14.9%. Recent earnings showed growth, with net income rising to ¥3.76 billion for H1 2026 from ¥2.60 billion a year earlier, suggesting potential for improved dividend stability despite past inconsistencies.

Key Takeaways

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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