Buy Japan for yield

While yields have risen, are they enough to tempt domestic and foreign investors?

Dividend yields in Japan are up to 1.8% today, higher than in the past years, but still not high enough to entice Japanese investors to relinquish the safety of bank deposits and the relative safety of fixed interest investments. In the recent era of disinflation and low investment yields, preserving the capital of retirement savings has been paramount, which is why the Japanese have never been attracted to buy the equity market, given its propensity to fall in value. We think high, sustainable and growing dividend yields will be the catalyst to change that mindset and not, as many commenta...