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Dividend Growth x Sustainability

Source: Adapts the U.S. Dividend Aristocrats (25+ consecutive years) concept to the disclosure history available for Japanese stocks

Consecutive dividend increases are a popular angle, but some companies keep hiking payouts they cannot afford, purely to protect the streak. This screen adds two affordability tests to a 5-year streak: dividends covered by free cash flow (coverage of 1.0+) and a payout ratio at or below 60%, keeping names that genuinely have room to keep raising. Note the maximum streak length is limited by how far EDINET disclosures can be traced back.

Screen conditions

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Data comes from annual securities reports disclosed on EDINET (Japan FSA), via EDINET DB. Price-related values are as of each company's fiscal year-end (back-calculated from the disclosed trailing PER), not live quotes. Coverage: all TSE-listed companies, with names added progressively.

About the metrics used here

Consecutive Dividend Increase Streak

Number of consecutive years dividend-per-share has increased; 5+ years is a reasonable bar. A sustained streak signals management's confidence in earnings growth and commitment to shareholder returns. (Source: Modeled on the U.S. Dividend Aristocrats (25+ consecutive years) concept)

Metrics we deliberately left out

Free Cash Flow

Operating cash flow minus capex. Measures actual cash left in the company's hands rather than accounting profit — the source of funds for dividends and buybacks. Capex is almost entirely missing in EDINET data before fiscal 2018, so older years will look sparse in the historical chart (a structural limitation of the underlying data, not a bug). (Source: Standard corporate finance concept)

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