In a week marked by cautious Federal Reserve commentary and political uncertainty, global markets experienced broad-based declines with U.S. stocks seeing significant volatility. Despite robust economic data, investor sentiment was rattled by concerns over future interest rate paths and potential government shutdowns, underscoring the importance of stability in investment choices. In such uncertain times, dividend stocks can offer a measure of reliability for investors seeking steady income streams amidst market fluctuations.
Overview: Rojana Industrial Park Public Company Limited, with a market cap of THB12.53 billion, operates in Thailand through its subsidiaries by manufacturing and selling electricity from solar cell systems.
Operations: Rojana Industrial Park Public Company Limited generates revenue through its power plants (THB11.79 billion), real estate sold and related services (THB6.65 billion), water plants (THB726 million), and rental services (THB32 million).
Dividend Yield: 6.3%
Rojana Industrial Park's recent earnings show significant growth, with net income rising to THB 2.26 billion in Q3 2024 from THB 267.68 million a year ago. Despite its low payout ratio of 21.4% and cash payout ratio of 12.5%, indicating well-covered dividends, the dividend yield of 6.3% is below top-tier levels in Thailand and has been volatile over the past decade, raising concerns about reliability despite past increases in payments.
Overview: Thai Union Group Public Company Limited is involved in the production and distribution of frozen, chilled, and canned seafood both in Thailand and globally, with a market capitalization of approximately THB52.34 billion.
Operations: Thai Union Group's revenue is primarily derived from Ambient Seafood at THB80.27 billion, Pet Food Business at THB20.93 billion, and Frozen and Chilled Seafood and Related Businesses at THB46.93 billion.
Dividend Yield: 4.3%
Thai Union Group's dividend yield of 4.3% is below Thailand's top-tier levels, and its dividends have been volatile over the past decade despite growth. The payout ratio of 46.2% and cash payout ratio of 23.6% suggest dividends are well covered by earnings and cash flows, but high debt levels could pose risks to sustainability. Recent financials show improved net income, with Q3 sales at THB 34.84 billion, reflecting a positive trend in earnings growth amidst plans for share repurchase initiatives.
Overview: Godo Steel, Ltd. is a Japanese company that manufactures and sells steel products, with a market cap of ¥55.28 billion.
Operations: Godo Steel, Ltd.'s revenue is primarily derived from its Steel Business, contributing ¥196.17 billion, and its Agricultural Materials Business, which adds ¥11.82 billion.
Dividend Yield: 6.3%
Godo Steel's dividend yield of 6.28% places it in the top 25% of Japanese dividend payers, though its payments have been volatile and unreliable over the past decade. Despite this instability, dividends are well covered by earnings and cash flows, with a payout ratio of 28.6% and a cash payout ratio of 22.4%. Trading at a significant discount to estimated fair value, Godo Steel offers potential value for investors seeking high-yield opportunities in Japan.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SET:ROJNA SET:TU and TSE:5410.
