Not only that, but many have said the long-term factors driving their expansion are ongoing in spite of recent market conditions.
A prime example is Noevir. The leading skincare product manufacturer's latest monthly figures are negative year-on-year due to a consumption driven-demand rush in Q1 2019 and a small impact from reduced inbound tourist demand.
However, the firm sees no underlying change in cosmetic demand. Its prices are stable, and its approach to shareholder returns will not be affected by recent monthly trends.
The stock currently yields 3.9 per cent and its dividend has been growing at around 10 per cent a year consistently.
“This too shall pass”
Our investment decisions are based around long-term factors that leverage Japan's ongoing move towards the high corporate governance standards held by the rest of the developed world.
Because these will continue to pay dividends – both literally and figuratively – in spite of macro issues like coronavirus, we are somewhat protected against the short-term panic selling currently ravaging the world's equity markets.
Given our long-term focus and belief that markets will eventually recover, the recent weakness even provides us with an excellent opportunity to add to the Japanese firms sticking to their guns when it comes to corporate governance.
Richard Aston manages the CC Japan Income & Growth Trust
