If you're wondering 'What should I buy?' when stock prices plummet. Two high-dividend ETFs you should know about
Hello, this is Oshidori😊
When stock prices drop significantly, looking at your asset screen makes you go ‘Yikes!😱’ doesn’t it?
Even though you thought, ‘I’ll buy when it gets cheaper!’, it’s scary when it actually drops.
Even if you have the urge to buy, you don’t know which company to choose…
I think there are many people who feel that way🥺
In the open chat, I mentioned, ‘Don’t rush to buy everything at once; buy the stocks you wanted little by little.’
This time, taking it a step further, I’d like to introduce the option of high-dividend ETFs, which I want even those who aren’t confident in picking individual stocks to know about🌱
If it’s difficult to choose companies one by one, there is also a way to invest in them all at once.
When it comes to high-dividend stocks, you shouldn’t just look at the dividend yield, right?
‘What kind of business are they earning money from?’
‘Does it look like they can keep paying dividends in the future?’
‘Aren’t you buying too many similar companies?’
Researching these things for many companies is tough when you’re not used to it💦
That’s where the option of ETFs that allow you to invest in multiple companies at once comes in.
An ETF is an investment trust that can be bought and sold on the stock exchange just like a stock.
With a high-dividend ETF, you can invest in high-dividend stocks selected according to a set policy with just one product😊
Not having to buy dozens of companies yourself is a point that makes it easy to get started, isn’t it?
However, even among ‘high-dividend ETFs,’ the contents differ.
This time, let’s look at the two Japanese stock ETFs that Hiro introduced in his story👇
① 1489 | Invest in 50 Japanese high-dividend stocks at once
NEXT FUNDS Nikkei 225 High Dividend Yield Stock 50 Index Linked Exchange Traded Fund (1489)
This is an ETF that tracks an index that selects 50 stocks with high expected dividend yields from the constituents of the Nikkei 225, in principle.
・Investment target: High-dividend stocks selected from Nikkei 225 constituents, 50 companies in principle
・Tracking target: Nikkei 225 High Dividend Yield Stock 50 Index (Total Return)
・Trust fee: 0.308% per annum (tax included)
・Dividend payment record date: The 7th of January, April, July, and October each year
・Trading unit: 1 share
・NISA: Eligible for the Growth Investment Quota
*The record date is different from the date the dividends are actually paid into your account.
The appeal is that you can start investing in 50 high-dividend Japanese companies with a single fund✨
“I’m interested in high-dividend stocks, but it’s hard to choose dozens of companies…”
This is an easy option to consider for those who feel this way.
The closing price on November 6, 2026, was 3,390 yen per share.
At that day’s price, it’s calculated that you could buy it from 3,390 yen, excluding trading commissions and other fees😊
On the other hand, even though it is diversified across 50 companies, it is different from investing broadly in the entire Japanese stock market.
Since it can be biased toward industries with many high-dividend stocks, you’ll want to check ‘what kind of companies are included.’
② 435A | Rotating investments according to dividend timing
iFreeETF Japan Equity Dividend Rotation Strategy (435A)
This is an ETF that focuses on stocks with upcoming dividend record dates and periodically rotates its investments.
You might be wondering, ‘What is rotation?’👀
Roughly speaking, it is a mechanism that rotates investments in order toward high-dividend stocks that will soon be eligible for dividends is.
・Investment target: Selected based on a unique rule, focusing on large and mid-cap TOPIX stocks
・Management method: Reviews holdings monthly, taking into account dividend record dates, etc.
・Trust fee: 0.4125% per year (including tax)
・Dividend payment record date: The 7th of January, April, July, and October each year
・Trading unit: 1 share
・NISA: Eligible for the Growth Investment Quota
In principle, it selects stocks with high expected dividend yields for the next period from among those that will reach their dividend record date within three months.
You don’t have to research and trade yourself, thinking ‘Next is this company, then that one’—the ETF handles the rebalancing for you.😊
This is one to know as an investment method that aims for both dividend income and capital gains.
However, it is not a system where you are guaranteed to profit just by acquiring the rights.
Since there are price drops due to ex-dividend dates and costs associated with trading, it is important to look at the dividends received and the price movements of the ETF you hold together.
Which one is better? First, let’s understand the ‘differences in how to choose’
To summarize the differences between the two simply, it’s like this👇
[1489]
・Selects high-dividend stocks from the Nikkei 225
・A system that invests in 50 high-dividend companies at once
・Trust fee is 0.308% per year
[435A]
・Selects by also focusing on the timing of dividend rights determination
・A system that rebalances investments every month according to its own rules
・Trust fee is 0.4125% per year
※Trust fees are both tax-inclusive. Separate costs associated with trading, etc., will apply.
You might think, ‘The higher the yield, the better!’, but what kind of system it uses for operation and whether you can feel comfortable holding it is also important.😊
When comparing dividend yields, make sure the figures are from the same point in time and calculated using the same method.
Yields calculated from past dividends are not a promise that you will receive the same amount in the future.
Even with ETFs, don’t buy all at once, but little by little
‘If I can invest in a bundle, I should buy a lot while I can!’
There is no need to rush.☺️
ETFs also invest in stocks, so if the overall market falls, the price will drop.
Being diversified is different from saying it won’t fall any further.
So, before you buy, you should decide on these three things.
-
The budget available for this additional purchase
-
The upper limit for the amount to buy at one time
-
The timing or price to consider for the next purchase
For example, suppose you have an investment budget of 60,000 yen after securing living expenses and money you will need in the near future.
The first amount you use is up to 20,000 yen.
Keep the remaining 40,000 yen, and when the next decided time or price is reached, consider purchasing again.
If you divide it like this, you won’t end up using your entire budget in the first go.🌱
※The amounts are examples to explain the concept. Since ETFs are in units of shares, the actual purchase amount will be adjusted according to the price.
Of course, buying in installments doesn’t guarantee an advantage.
Sometimes the stock price just keeps going up.
Even so, I believe that being able to think ‘I still have money left to use’ helps you make calm decisions 😊
You don’t have to end it with ‘I don’t know what to buy’
There are ways to pick individual stocks yourself, and there are also ways to invest in a bundle using ETFs.
What I wanted to convey this time is that
even if you aren’t confident in picking individual stocks, there are ways to consider investing in high-dividend stocks
☺️
Start by searching for ‘1489’ and ‘435A’ on your brokerage’s screen to look at their structures and holdings.
Starting there is more than enough.
If you don’t have the spare cash to buy more right now, don’t worry.
Learning about it for the future is also a great form of preparation 🌱
Don’t get swayed just by the price movements right in front of you;
find a method that suits you and move forward at a pace that works for you 😊🍀
※ This article provides information for considering investment targets. It does not recommend the purchase of any specific ETF. Principal and dividends are not guaranteed. Please check the latest prospectus, fees, and investment policies before purchasing.
※ Basic information confirmed as of November 7, 2026. To receive ETF dividends tax-free in a NISA account, you must set your receipt method to ‘Proportional Distribution Method’.