The new NISA will enter its second year in 2025. Whether you were successful in 2024 or not, this is an opportunity for those who didn’t have the results they wanted to have, to review their results and do better in 2025. Alternatively, there may be some people who are a little late to the game and are only just starting to take advantage of the new NISA. High-dividend stocks are recommended as investment targets for the new NISA. However, a high dividend yield is not necessarily a good thing. From “77 Stocks and Mutual Trusts to Buy with the New NISA, 2025 Edition,” created by ZAI, the best-selling monthly money magazine, we explain the key points to consider when buying high-dividend stocks. Additionally, we will provide some examples of high quality dividend stocks. ●NTT’s basic policy is to “increase dividends every year”! The risk of a dividend cut is extremely small. If you hold stocks with increasing dividends for a long time, the dividend yield based on the purchase price will increase. As an example, we will introduce one of the “10-year dividend stocks” selected by the monthly money magazine Diamond Zai. NTT is expected to increase its dividend for the 14th consecutive year this fiscal year. The dividend has not been cut in over 25 years. The dividend yield 10 years ago was 2.83%, but if you bought the stock 10 years ago and held on to it, your dividend yield based on the stock price at the time of purchase would be 8.19%*. Furthermore, the company’s basic policy is to “continuously increase dividends.” Recently, “progressive dividend” stocks, which have the policy of maintaining or increasing dividend amounts – in other words, which declare that they will not cut dividends – have been attracting a lot of attention. NTT’s policy can be said to be “more than” progressive dividends. Another big attraction is that the shares will be split into 25 shares in July 2023, making them available for purchase for as low as 10,000 yen. The company is highly competitive and is actively expanding into AI-related fields. The stock price fell in the first half of 2024 as a reaction to the stock’s excessive popularity among investors, but we can expect the stock price to rise in the future.
A 10-year dividend stock is a stock that scores highly on Zai’s unique indicator “10-year dividend rate,” and is “a stock that can be used to receive dividends with peace of mind for the next 10 years.” We thoroughly evaluate companies based on past dividend performance, their ability to pay dividends, and the stability and growth of their business performance. “Maintaining dividends,” “Increasing dividends,” and “Increasing profits” refer to whether or not there has been a dividend cut, the number of times that dividends have been increased, and the number of times that profits for the current period have increased over the past 10 years, including the forecast for this fiscal year. “Dividend payout ratio” and “profit margin” (operating profit margin on sales) are based on forecasts for this fiscal year, while “size” is an evaluation based on market capitalization. *10 years ago (as of November 28, 2014): Expected dividend 1.8 yen ÷ share price 63.5 yen x 100 = 2.83% →10 years from now (as of November 29, 2024): Expected dividend 5.2 yen ÷ purchase share price 63.5 yen x 100 = 8.19% (Calculated based on dividend amount and share price taking into account stock splits) ● Check how you receive your dividends! You may be taxed even with the new NISA When investing in high-yield stocks, be careful about the timing of your purchases. The share prices of high-dividend stocks tend to rise toward the “last day of rights” (two business days before the record date), which is the deadline for receiving dividends for that period, and then fall sharply the day after the last day of rights (the ex-dividend date). It is best to avoid purchasing just before the “last day of rights” when prices will be higher. Also check how you will receive your dividends. In order to obtain the tax exemption benefit, you must use the “pro rata distribution method based on the number of shares” in which you receive dividends through the securities company from which you purchased the shares. Please note that even with the new NISA, if you receive your dividends at a bank (registered dividend receipt account method) or at a post office (dividend receipt method), you will still be taxed on the dividends. *This article has been re-edited from “77 Stocks and Mutual Trusts to Buy with the New NISA, 2025 Edition, Created by Zai, the Best-Selling Monthly Money Magazine” (Diamond Publishing), edited by the Diamond Zai editorial department. Diamond Zai Editorial Department.
>>1 There are too many people who hold Japanese stocks but don’t look at US Treasury yields or the dollar index The only thing they refer to is the US employment statistics Japanese stocks depend on the US.
Former Finance Ministry employee, Grandpa: “Don’t ever invest in stocks. “It’s a system where you can’t make money unless you’re an insider,” my late grandpa used to say.
If Trump takes office, US stocks will become even more powerful. I don’t know what kind of criticism he’ll bring to the table, so who’s going to buy Japanese stocks?
People who buy garbage stocks like NTT are ignorant. The total number of shares issued is a staggering 90.55 billion. How much does it cost to just send a notice of the general meeting to shareholders? lol.
The interest payment costs on Japanese government bonds are expected to continue to rise. Even though interest rates are low, they are issuing a lot of government bonds. What will happen if public servants’ salaries increase? I don’t know. That’s what it’s like to be agnostic. God is great.
>>30 Since you have a growth investment limit, I think it would be a good idea to buy and sell small amounts to earn some pocket money and get used to it.
I’m buying Orkan SP Vietnam Investment Trust I wonder if there are any emerging countries that I can recommend with an eye to 30 years from now (´・ω・`).
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