Mitsubishi UFJ Financial (MTU - Get Report) trades an average of 3.1 million shares per day with a market cap of $97 billion. 52-Week High: $6.88 Beta: 0.79 Price-to-Book Ratio: 0.72 The Mitsubishi Group is well known for its cars and TVs, but did you know that one of the group's companies, Mitsubishi UFJ Financial, is one of the world's largest bank holding companies? The current price action demonstrates the increasing desire to own a piece of the company too. Mitsubishi is up more than 40% from a year ago, and the daily and weekly charts are solidly bullish. The company pays a dividend yield of 2.2%, which is like a double-stuffed cookie for long-term investors. What may initially scare some investors is the high trailing price-to-earnings ratio. The trailing P/E is a nosebleed 66, but fortunately the forward P/E is more suitable. In this case, the forward P/E is only 15, well within my premium tolerance of 20. The average estimate for next year's earnings per share is 45 cents, down from an estimated 51 cents for the current year. Japan has been in the news a lot lately, especially the yen.
Because of the high volatility lately in the yen, I'm not surprised Japanese stocks are experiencing a lot of turbulence too. Buy on dips, but also expect Mitsubishi to test $7 soon. If the stock doesn't get higher than that in the near term, at least the dividend will buy a lot of time to wait for such a move.