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Japanese stocks yield more than US stocks

March 15, 2011

For the first time in decades, the dividend yield of Japanese stocks exceed the dividend yield of US stocks. As of the close on March 15th, the S&P-500 dividend yield is 1.86. After last night’s 10% decline in Japan (and the horrific catastrophe unfolding there), the dividend yield on the Nikkei-225 is now 2.02%. (The chart above shows the S&P-500  dividend yield minus the Nikkei-225 dividend yield  using monthly data. It doesn’t include the post-earthquake  price moves.)

Determining whether this represents an investment opportunity, or an accurate reflection of the long-term prospects for Japanese industry,  is left as an exercise for the reader. Rocky notes that  Japanese 10 year bonds yield 1.21% and US 10 year bonds yield 3.24% — which makes this dividend phenomenon even more striking.

[Disclosure: Rocky never provides investment advice. He will also forgo  any jokes about the dismissal of the Aflac Duck because it would be inappropriate — as the Japanese people suffer the aftermath of a historic disaster. ]

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  1. March 15, 2011 at 1:41 pm

    “Historic” might be a better choice than “historical”. Can’t say for sure. However, I will note that “historical” is awfully close to “hysterical”, at least in my mind.

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