ETFs for Japanese Dividend Growth

DXJT, which is up 9% since its April debut, offers investors another kicker in addition to dividend growth potential. The ETF is also a credible backdoor to the widely anticipated Alibaba IPO.DXJT’s leverage to Alibaba comes by way of an almost 10% weight to SoftBank (OTC: SFTBY). The Japanese Internet and telecom giant owns 37% of Alibaba, or 25% more than Yahoo’s stake. In fact, SoftBank operates Yahoo Japan. The company also has stakes in Sprint (NYSE: S) and China’s RenRen (NYSE: RENN). [An Interesting ETF for Alibaba Access]

Japanese banks have also shown impressive dividend growth. The WisdomTree dividend stream shows payout growth of 22% from Japan’s financial services sector. The WisdomTree Japan Hedged Financials Fund (NYSEArca: DXJF) sports a 30-day SEC yield of 1.6%, which is 13 basis points higher than the comparable yield on the Financial Select Sector SPDR (NYSEArca: XLF). [Bank on Japanese Banks With This ETF]

DXJF has surged 11% since its April debut.

“Two key initiatives from Abenomics’ third-arrow reforms revolve around corporate governance and investor stewardship. Both reform initiatives are designed to encourage companies to become better allocators of capital and encourage them to use their stockpiles of cash, leading to more distributions to shareholders. We see this trend of higher dividend payouts as sustainable for some time, especially as profits continue to increase,” added Schwartz.

WisdomTree Japan Hedged Financials Fund