Japanese companies are increasing dividends and share buybacks at a record pace, providing support to a market that was on the verge of a correction.

Among companies that had reported earnings by Friday, 53% announced plans to raise dividends in the current fiscal year, according to Fumio Matsumoto, chief strategist at Okasan Securities.

The increased payouts to shareholders come as the Tokyo Stock Exchange pressures companies to improve capital efficiency and valuations. They have also helped spur a rebound in the Topix index after it dipped close to 10% from its March high.