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[MS&AD (8725)] A Beginner's Guide to a Major Non-Life Insurer with Attractive 'Non-Cutting Dividends' | I Hold It in My NISA Too

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When I previously wrote about 'NTT as a first high-dividend stock for beginners,' I was often asked, 'Are there any others?'

In that vein, another name that often comes up is the major non-life insurer MS&AD (8725).

It is one of the 'three mega non-life insurers,' alongside Tokio Marine and SOMPO, and is very popular among individual investors as a high-dividend stock.

I also hold 100 shares (worth about 450,000 yen) in my NISA account.

Today, from the perspective of someone who actually owns it, I will honestly write about not only the good points but also the points to be aware of.

*To clarify beforehand, this is my personal opinion and does not recommend the purchase of any specific stock. The figures are as of June 2026, and both stock prices and yields change daily.

The '3 Reasons' Why MS&AD Is Popular as a High-Dividend Stock

1. 'Progressive Dividend' = The company explicitly states it 'will not cut dividends'

The scariest thing about high-dividend stocks is a dividend cut. MS&AD clearly states 'progressive dividend' (not cutting ordinary dividends and increasing them in line with profit growth) as its dividend policy.

In fact, the annual dividend is forecast to increase from 160 yen for the fiscal year ending March 2026 to 170 yen for the fiscal year ending March 2027.

The fact that the company promises 'not to cut' is a major source of peace of mind for beginners.

2. Shareholder returns are extremely generous (dividends + share buybacks)

MS&AD has a policy of returningabout 50% of group profits to shareholders through dividends and share buybacks.In fact, for the 2025 fiscal year, in addition to a dividend increase,

a share buyback of up to 265 billion yenwas also decided. The 'generosity of returns,' combining not just dividends but also share buybacks, is a major appeal of this stock.

3. One of the three mega non-life insurers, large-scale and stable

Insurance is a defensive business that does not suddenly disappear even when the economy is bad. MS&AD achieved a record profit of over 1.1 trillion yen in ordinary profit for the fiscal year ending March 2026.

record profitThe analyst rating from securities companies is also 'slightly bullish' (the consensus target stock price is about 5,017 yen), and the view from institutional investors is not bad either.

'3 Points to Note'

You shouldn't trust an article that doesn't write this. These are the points I am aware of as a holder.

1. Natural disaster risk (unique to non-life insurance)

In non-life insurance, when major disasters such as large typhoons or earthquakes occur, insurance payouts increase, causing profits to fluctuate significantly. This is the fate of the non-life insurance business, and even if business performance is stable, 'disaster years' are hard to predict.

2. Recent strong performance has been supported in part by 'gains on the sale of policy-held shares'

Non-life insurance companies, including MS&AD, have been selling off shares of business partners they have held for many years (policy-held shares) and using those profits for dividend increases and share buybacks. Therefore, the recent record profits have been boosted not only by the core business but also by

gains on the sale of shares.Once the sales cycle is complete, profit growth may settle down. In fact,

a decrease in profit is expected for the fiscal year ending March 2027, according to market consensus.(The group also plans to merge its non-life insurance subsidiaries in 2027, which is expected to improve management efficiency.)

3. The yield is about 3.7%, and 100 shares cost about 450,000 yen

The expected dividend yield is approximately 3.74%.

It is respectable, but not "ultra-high yield." Like NTT, it is a stock to hold for its "non-decreasing dividends and generous returns" rather than just "high yield."Also, the stock price is in the 4,500 yen range, so 100 shares cost about 450,000 yen.

It is not as accessible as NTT (150 yen per share).

*However, you can buy from about 4,500 yen if you buy a single share (fractional share).

Views from experts and investment media (for reference)

To avoid being biased by my own impressions, here are the views of the public.

With the expansion of the new NISA, individual investors' preference for "large-cap, high-dividend stocks" has strengthened, and non-life insurance stocks are supported as a prime example of this (Nihon Keizai Shimbun).

MS&AD is highly regarded for its shareholder return policy of progressive dividends and a 50% total payout ratio (company IR, various summaries), and analyst ratings are also "somewhat bullish."

On the other hand, there are many calm warnings to be mindful of the backlash from selling policy stocks and disaster risks.

"The return policy is excellent, but understand the factors that cause profit fluctuations and hold for the long term"—this is the common view.

How I "hold" MS&AD

For reference, this is how I hold it.

  • 100 shares in my NISA account (worth about 450,000 yen).
    Dividends are received tax-free.
    (If the annual forecast is 170 yen, about 17,000 yen per 100 shares is tax-free)

  • To avoid being biased toward the non-life insurance sector, I diversify by combining it with sectors that move for different reasons, such as telecommunications (NTT)

  • Even if profits fluctuate due to disaster years or the cycle of selling policy stocks, I trust in the "non-decreasing dividends" and hold for the long term

Summary: MS&AD is a stock for "non-decreasing dividends" and "generous returns"

MS&AD is popular as a high-dividend stock because of the combination of progressive dividends (a promise not to decrease) x generous shareholder returns (dividends + share buybacks) x the stability of the three major non-life insurers.

However, you should understand the "profit fluctuation factors" such as natural disasters and dependence on gains from selling policy stocks.

I think it is a stock suitable for people who want to "receive non-decreasing dividends and generous returns steadily over a long period, rather than looking for flashiness."

What about you?

Between NTT and MS&AD, which one are you interested in as your "first high-dividend stock"? Or is it another stock? Please let me know in the comments if you'd like.

📌 If you found this article helpful, please follow me to get updates on the next stock.
Reading these together will help you connect the dots from "choosing -> buying -> continuing."

Reference links (Source: as of June 2026)

Data on stock prices, dividends, etc.

Dividend Policy and Shareholder Returns (Primary Information and Explanation)

Media and Market Perspectives

*This article is based on personal investment experience and views, and does not recommend the purchase or investment in any specific stock. The author holds MS&AD shares. There is a possibility of stock price decline, dividend cuts, or loss of principal. Figures such as dividend yield and stock prices are as of June 2026 and are subject to change. Please check the latest information and make investment decisions at your own risk.


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