Canon Stock And 2 Japan Dividend Shares Paying Over 5%

Eurozone private credit growth is picking up, which points to easier borrowing conditions and healthier balance sheets for many established companies. That combination can make reliable income from dividends feel even more attractive, especially when bond yields move around. This article looks at three stocks from the Dividend Powerhouses screener, each offering a yield above 5% that is covered, growing and historically stable.

The three dividend stocks covered below are just a starting sample, since the full Dividend Powerhouses screen surfaced 453 more companies with equally compelling income narratives that are not included here. To see the complete list, head straight into the Dividend Powerhouses (3%+ Yield) screener to identify, analyze and focus on the highest conviction ideas that fit your income goals.

Canon (TSE:7751)

Overview: Canon is a Japan based global manufacturer of printers, cameras, medical imaging systems and industrial equipment, with a long history as a reliable cash generator. Its mature Printing Business Unit, particularly office and production printers that drive recurring consumables and service revenue, is a key reason Canon fits the Dividend Powerhouses theme of covered, growing and stable income.

Market Cap: ¥3.98t

Income focused investors may find Canon interesting because its cash rich Printing Business Unit helps fund a high, recurring dividend that aligns closely with the Dividend Powerhouses goal of covered, growing and stable payouts. Recent half year results to June 30, 2026 showed higher sales and earnings, which supports that dividend story and is backed up by a sizable share buyback program that signals ongoing commitment to shareholder returns. At the same time, Canon trades at a lower P/E than many tech peers, which can give some valuation comfort if earnings growth stays moderate. The key risk to watch is any pressure on the office and production printing markets, since that segment plays such a central role in sustaining cash flows for dividends.

Canon’s cash rich printing engine and lower P/E point to a story many investors may be overlooking. Get the full picture in the 4 key rewards and 1 important warning sign

Tokio Marine Holdings (TSE:8766)

Overview: Tokio Marine Holdings is a global insurer based in Japan that provides a wide range of life and non life insurance products, from everyday auto and property cover to specialized policies for health, catastrophe, cyber risk and more. It also operates in reinsurance, asset management and related services. Its core insurance businesses generate recurring premium income and investment returns that underpin the well covered, growing and stable dividend profile that fits the Dividend Powerhouses theme.

Operations: Tokio Marine generates most of its revenue from overseas insurance, which contributes about ¥5.41b, alongside domestic property and casualty insurance at about ¥3.16b, domestic life insurance at about ¥0.44b and solution and other business at about ¥0.33b, offset by unallocated adjustments.

Market Cap: ¥14.50t

Tokio Marine offers income investors a mix of a stable, well covered dividend and exposure to a broad global insurance group that is reshaping itself through the Re New efficiency program, equity divestments and steady buybacks. Recurring premiums and investment income support the dividend, while smaller recent moves such as investment in UK based carbon insurance firm Kita hint at new solution areas like disaster resilience and carbon markets. The trade off is that profit margins and ROE leave room for improvement and there is execution risk around international investments and M&A pricing. For investors who want more than a simple high yield story, Tokio Marine’s combination of recurring cash flows, capital returns and restructuring plans deserves a closer look.

Tokio Marine’s reshaping story, from Re New to buybacks, can look straightforward on the surface. The real question is what the full capital return and risk trade off looks like inside the 3 key rewards and 1 important warning sign

Daiichi Sankyo Company (TSE:4568)

Overview: Daiichi Sankyo Company is a Japan based global pharmaceutical group focused on cancer and specialty medicines, with marketed drugs such as Enhertu in HER2 targeted oncology, Lixiana and Savaysa in blood clot prevention, and cholesterol and blood pressure treatments like Nilemdo and Olmetec Sevikar that help generate steady cash flow to support its dividend profile.

Operations: Daiichi Sankyo Company currently generates all of its ¥2,223,188 million revenue from its Pharmaceutical Operation segment.

Market Cap: ¥5.25t

Daiichi Sankyo Company gives dividend seekers something different from a classic utility style payer, since its cash generating pharma portfolio, led by oncology drugs like Enhertu and Datroway plus cardiovascular brands such as Lixiana Savaysa and Olmetec Sevikar, sits behind today’s yield while the pipeline works to defend that income. Recent trial progress, new approvals and a fresh Commercialization Unit show a clear push to turn a deep antibody drug conjugate franchise into lasting cash flows. The catch is that dividends are not fully covered by free cash flow and earnings still lean heavily on a handful of cancer drugs in a tightly regulated, competitive sector. For investors comfortable with pharma specific risks, that mix of income, growth potential and concentration risk deserves closer attention.

Daiichi Sankyo Company’s accelerating oncology story and cash generating portfolio are often discussed separately. See how the pieces fit together in the analyst forecasts for Daiichi Sankyo Company and where one underappreciated risk could flip the script.

Seeking Fresh Alternatives For Your Income?

Some of the most interesting ideas can move early while many investors are still watching. Scan these fresh stock groups before momentum becomes widely recognized.

• Review the curated 26 high quality undervalued stocks to explore potential value plays before they gain wider attention, while any pricing gap may still exist.
• Explore structural trends in automation and manufacturing by checking out the hand picked 37 robotics and automation stocks, while many of these opportunities may still be less widely followed.
• Consider the focused 38 power grid technology and infrastructure stocks to review companies that could be relevant for future infrastructure upgrades, before more capital potentially targets the same set of stocks.

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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