I moved the 21 million yen I had in Floating-Rate 10-Year Individual Government Bonds to three companies—Mitsubishi HC Capital (8593), Inabata & Co. (8098), and Alconix (3036)—in the third week of September 2026. Adding my own funds to the proceeds from the bond redemption, the total amount purchased was approximately 25.55 million yen. The dividends I will receive are approximately 840,000 yen per year before taxes. Since it was about 410,000 yen per year when it was in government bonds, the amount is nearly doubled.
Since the invested amounts differ, I will also list the yields. The government bonds were at 1.95%, and the three companies are at approximately 3.28% (both before taxes). I will write about the details of this difference later.
This article is for people in their 40s to 60s who have 10 million yen or more in individual government bonds or time deposits and are feeling uneasy, thinking, “Interest rates have gone up, but is it okay to leave it like this?” It is not suitable for people who cannot sleep at night if stock prices drop by 3% in a single day, or for those with an investment principal of less than 3 million yen. Such people should just stick with government bonds.
September 2026 record.
[Record] Friday, September 18, 2026
・Bank of Japan decides to raise the policy interest rate to around 1.25% at the Monetary Policy Meeting
・10-year government bond yields rise. The next applicable interest rate for Floating-Rate 10-Year bonds is, by my calculation, around 2.0% per year (the initial rate for the September offering is 1.95%).
・13:15 Executed purchase of 2,600 shares of Alconix (3036) at approximately 3,400 yen.
・15:00 Completed purchase of a total of approximately 25.55 million yen across the 3 companies.
The position is approximately 25.55 million yen across 3 companies. The annual dividend is 839,000 yen before taxes. I will write about this in order.
[What you will learn in this article]
1. Why I, a former government bond enthusiast, became dissatisfied with “420,000 yen per year”
2. The cost of early redemption I paid when selling government bonds
3. What I was first taught at my desk 20 years ago
4. The reason I narrowed it down to 3 companies (how to view operating cash flow)
5. The breakdown of 840,000 yen per year and how to exit if they cut dividends (paid content)
📌 Recommended reading
・[2026] Individual Government Bonds over Bank Deposits: The Complete Step-by-Step Guide to Getting 5x the Interest with Floating-Rate 10-Year Bonds
・Real Estate Stocks with GA Technologies (3491) and FJ Next: How to Calculate the Full After-Tax Take-Home Pay of 4% Dividends (202…
💴 410,000 yen per year from individual government bonds—I was satisfied with that
To be honest, until just half a year ago, I was a “government bond enthusiast.”
In the spring of 2025, when the dollar-yen exchange rate was volatile and Japanese stocks were fluctuating, I put my 21 million yen into floating-rate 10-year individual government bonds. The reason was simple: the principal doesn’t decrease. Even for me, having spent 7 years on a prop desk trading company money, I wanted a ‘place where nothing happens’ for my own money.
For floating-rate 10-year bonds, the interest rate is calculated by multiplying the 10-year government bond yield by 0.66. Since it is reviewed every six months, if interest rates rise, the payout increases as well. With the Bank of Japan at September 2026 levels of 1.25%, the next applicable interest rate was calculated to rise to around 2% per year.
21 million yen × 1.95% = approximately 410,000 yen per year.
After taxes, the take-home amount is about 326,000 yen. Considering that 10 years ago, ordinary savings accounts were at 0.001% per year, this was a good result.
But you know, when I typed this number into my smartphone calculator, my hand stopped for a moment.
‘320,000 yen per year. That’s 27,000 yen per month.’.
I wanted to re-calculate this ‘surprisingly small amount when broken down monthly’ over and over, so I bought a Casio Mini-Just Calculator to keep on my desk. It cost around 1,500 yen. Unlike a smartphone, it isn’t interrupted by notifications, so I can focus solely on the money figures.
The role I expected this 21 million yen to play was as the ‘foundation for my retirement living expenses.’ Working backward from that, 27,000 yen per month is too thin as a foundation. Moreover, government bond interest drops automatically if interest rates fall. There is no promise that it will increase.
I don’t mean to say here that ‘government bonds are bad.’ Government bonds haven’t lost. It’s just that their role in my hands was different. That’s all.
💡 What you can do today: Write down the ‘annual payout amount’ of the government bonds or time deposits you currently hold, after taxes. When broken down monthly, it’s usually smaller than you imagine.
🏦 The cost paid to sell the government bonds was 256,000 yen
Individual government bonds can be sold back to the government at any time after 1 year has passed since purchase. This is a truly well-designed product.
However, you cannot exit for free. When redeeming early, ‘the interest for the two most recent periods (after tax)’ is deducted. In my case, it was like this (the figures are estimates. Actual amounts vary depending on the interest rate and the time of purchase, so be sure to check the official simulation).
・Interest for the last two periods: 147,000 yen + 174,300 yen = 321,300 yen
・After-tax amount: 321,300 yen × 0.79685 = approx. 256,000 yen
・Amount received: 21 million yen − 256,000 yen = 20,744,000 yen
September 2026 I applied for redemption on September 8, and the money arrived in my account on September 11. I added approximately 20.74 million yen to about 4.8 million yen of my own funds to purchase about 25.55 million yen worth of the 3 companies.
256,000 yen. It is by no means a small amount.
For those who get confused between NISA tax exemptions and the 20.315% tax in specific accounts, it is a good idea to keep one New NISA introductory book on hand for around 1,500 yen. If you think of it as insurance before paying 256,000 yen, it is not a price to hesitate over.
Looking at these numbers, it would not be strange for someone to decide that staying with government bonds is fine. I agonized over it for 3 days too. The deciding factor was the following calculation.
※This article is a sharing of the author’s personal trading records and market views, and does not recommend buying or selling specific stocks, nor is it investment advice. Please make investment decisions at your own risk.
💎 What you get in the rest of this (paid part)
✅ The story of holding 700,000 yen in unrealized losses due to JT (2914) dividend cuts
✅ Institutional investors look at “Operating CF” before dividend payout ratios
✅ The real-money table for the 3 companies: Breakdown of 839,000 yen in annual dividends
From here on, I will leave those records as actual numbers.