Until recently, dividend yield was indeed a strong predictor of future returns. Companies on the Topix Index now generate close to 3% cash yield, the highest in three years. Dividend yield has not delivered superior returns in the past year. Share buybacks, meanwhile, have never impressed stock investors, perhaps because of their one-time nature. Combined, banks and insurers still own roughly 14% of Japan’s stock market and they have struggled to deploy their cash.

Source: Washington Post October 07, 2019 00:00 UTC