Published on December 27th, 2017
The Nikkei 225 Index is a price-weighted index of Japanese equities and is widely viewed as the best barometer for the performance of Japanese equities.
Because of the size of the Japanese economy, the Nikkei 225 Index is an excellent place to look for international investment opportunities.
The Nikkei 225 Stocks List available for download above contains the following investing metrics for each constituent business in the Nikkei 225 Index:
- Dividend Yield
- Price-to-Earnings Ratio
- Market Capitalization
- Return on Equity
The remainder of this article will show you how to use the Nikkei 225 Stocks List to find compelling investment ideas.
How To Use The Nikkei 225 Stocks List To Find Investment Ideas
Having an Excel document containing each component company of the Nikkei 225 Index along with relevant investing metrics can be extremely powerful.
This resourced becomes even more useful when combined with a working knowledge of Microsoft Excel.
With that in mind, the next section of this article will show you how to apply three useful investing screens to the Nikkei 225 Stocks List.
The first screen that we’ll implement is for Nikkei 225 stocks that pay dividends to their shareholders.
Screen 1: Dividend-Paying Nikkei 225 Stocks
Step 1: Download the Nikkei 225 Stocks List by clicking here.
Step 2: Click the filter icon at the top of the dividend yield column, as shown below.
Step 3: Change the filter setting to “Greater Than,” and input 0 into the field beside it, as shown below.
The remaining stocks in this Excel document are the dividend-paying constituents of the Nikkei 225 Index.
The next filter we’ll demonstrate how to implement is for stocks with price-to-earnings ratios below 10 and returns on equity above 10%.
Screen 2: Low Price-to-Earnings Ratios, High Returns on Equity
Step 1: Download the Nikkei 225 Stocks List by clicking here.
Step 2: Click on the filter icon at the top of the price-to-earnings ratio column, as shown below.
Step 3: Change the filter setting to “Less Than,” and input 10 into the field beside it. This will filter for stocks with price-to-earnings ratios less than 10.
Step 4: Change the secondary filter setting to “Greater Than,” and input 0 into the field beside it. This will exclude stocks with negative price-to-earnings ratios – in other words, stocks with negative earnings.
Step 5: Close the filter window (by clicking the exit button, not by clicking the “Clear Filter” button in the bottom right corner. Then, click on the filter icon at the top of the return on equity column, as shown below.
Step 6: Change the filter setting to “Greater Than” and input 0.1 into the field beside it.
The remaining stocks in this Excel sheet are Nikkei 225 constituents with price-to-earnings ratios below 10 and returns on equity exceeding 10%.
The next filter we’ll show you how to implement is for Nikkei 225 constituents with market capitalizations above US$10 billion, price-to-earnings ratios below 15, and dividend yields above 3%.
Screen 3: Large Market Capitalization, Low Price-to-Earnings Ratios, High Dividend Yields
Step 1: Download the Nikkei 225 Stocks List by clicking here.
Step 2: Click the filter icon at the top of market capitalization column, as shown below.
Step 3: Change the filter setting to “Greater Than” and input 10 into the field beside it. This will filter for stocks in the Nikkei 225 Index with market capitalizations above $10 billion.
Step 4: Close out of the filter window (by clicking the exit button, not by clicking the “Clear Filter” button in the bottom right corner). Then, click on the filter icon at the top of the price-to-earnings ratio column, as shown below.
Step 5: Change the filter setting to “Less Than” and input 15 into the field beside it, as shown below.
Step 6: Close out of the filter window and click on the filter icon at the top of the dividend yield column, as shown below.
Step 7: Change the filter setting to “Greater Than” and input 0.03 into the field beside it, as shown below. This will filter for stocks with dividend yields above 3%.
The remaining stocks in this Excel spreadsheet are constituents of the Nikkei 225 Index with market capitalizations above US$10 billion, price-to-earnings ratios below 15, and dividend yields above 3%. This is a very selective screen, which is reflective in the low number of stocks that pass the screen (and remain visible in the spreadsheet after the various filters are applied).
You now have a fundamental understanding of how to use the Nikkei 225 Stocks List to find compelling investment ideas.
To close out this article, we’ll describe other resources that you can use to find investment opportunities.
Final Thoughts
The Nikkei 225 Stocks List is a great place to find investment opportunities for international investors.
With that said, it is not the only place where quality investments can be found.
If you’re a dividend growth investor (as many Sure Dividend readers are), the following databases contain some of the most high-quality dividend growth stocks around:
- The Dividend Aristocrats: dividend stocks with 25+ years of consecutive dividend increases.
- The Dividend Achievers: dividend stocks with 10+ years of consecutive dividend increases.
- The Dividend Kings: the dividend kings are the best-of-the-best when it comes to dividend longevity. The requirement to be a dividend king is 50+ years of consecutive dividend increases.
Long dividend histories are an excellent sign of a high-quality business. Another good sign is a long corporate history. With that in mind, it can be useful to look through a list of “blue chip stocks” – companies with long operating histories and above-average dividend yields:
You might also be interested in finding dividend stocks from a particular sector of the United States stock market. If that is the case, the following databases will prove very powerful:
- The Complete List Of All Dividend-Paying Utility Stocks
- The Complete List Of All Dividend-Paying Healthcare Stocks
- The Complete List Of All Dividend-Paying Consumer Cyclical Stocks
- The Complete List Of All Dividend-Paying Consumer Staples Stocks
- The Complete List Of All Dividend-Paying Financial Stocks
- The Complete List Of All Dividend-Paying Energy Stocks
- The Complete List Of All Dividend-Paying Industrial Stocks
- The Complete List Of All Dividend-Paying Materials Stocks
- The Complete List Of All Dividend-Paying Telecommunications Stocks
One last resource is to look into the portfolio of the world’s best investor. Warren Buffett is the Chairman and Chief Executive Officer of Berkshire Hathaway, a large investment conglomerate with a stock portfolio worth more than $100 billion. You can access his portfolio below.
