In the midst of global market fluctuations, driven by policy uncertainties and economic shifts under the new U.S. administration, investors are seeking stability amidst volatility. With inflation concerns and interest rate expectations shaping market sentiment, dividend stocks offering yields of at least 3% present a compelling option for those looking to balance growth with income. A good dividend stock in such an environment typically combines a strong track record of consistent payouts with resilience to economic changes, making it an attractive choice for income-focused investors.
Top 10 Dividend Stocks
Name
Dividend Yield
Dividend Rating
Tsubakimoto Chain (TSE:6371)
4.14%
★★★★★★
Wuliangye YibinLtd (SZSE:000858)
3.13%
★★★★★★
CAC Holdings (TSE:4725)
4.62%
★★★★★★
Guangxi LiuYao Group (SHSE:603368)
3.25%
★★★★★★
Padma Oil (DSE:PADMAOIL)
6.74%
★★★★★★
GakkyushaLtd (TSE:9769)
4.47%
★★★★★★
China South Publishing & Media Group (SHSE:601098)
Overview: Jardine Cycle & Carriage Limited is an investment holding company involved in various sectors including financial services, heavy equipment, mining, construction and energy, agribusiness, infrastructure and logistics, information technology, and property both in Indonesia and internationally; it has a market cap of SGD11.11 billion.
Operations: Jardine Cycle & Carriage Limited generates revenue through its diverse operations in financial services, heavy equipment, mining, construction and energy, agribusiness, infrastructure and logistics, information technology, and property sectors.
Dividend Yield: 5.6%
Jardine Cycle & Carriage's dividend payments have increased over the past decade, yet their stability is questionable due to volatility with annual drops over 20%. Despite this, dividends are well-covered by both earnings and cash flows, with payout ratios of 44.4% and 30.8%, respectively. The stock trades at a discount to its estimated fair value and offers good relative value compared to peers, though its yield (5.64%) is below top-tier levels in Singapore.
Overview: Nippon Shinyaku Co., Ltd. is a company that manufactures and sells pharmaceuticals and foodstuffs both in Japan and internationally, with a market cap of ¥274.06 billion.
Operations: Nippon Shinyaku Co., Ltd. generates revenue from its Pharmaceuticals segment, which accounts for ¥127.97 billion, and its Functional Food segment, contributing ¥22.40 billion.
Dividend Yield: 3%
Nippon Shinyaku's dividend payments have been stable and growing over the past decade, though the current yield of 3.05% is below top-tier levels in Japan. While dividends are well-covered by earnings with a payout ratio of 30.5%, they are not supported by free cash flows due to a high cash payout ratio of 99.5%. The stock trades at a favorable price-to-earnings ratio compared to the JP market, despite recent share price volatility and an expected decline in earnings.
Overview: IEI Integration Corp. is a global provider of industrial computer products with a market cap of NT$13.56 billion.
Operations: IEI Integration Corp. generates its revenue from the provision of industrial computer products on a global scale.
Dividend Yield: 4.6%
IEI Integration's dividend yield is among the top 25% in Taiwan, but payments have been volatile and declining over the past decade. Despite this instability, dividends are covered by earnings and cash flows with payout ratios of 51.9% and 65.1%, respectively. The stock's price-to-earnings ratio is favorable compared to the market average, though recent earnings have declined significantly year-over-year, which may impact future dividend reliability.
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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 SGX:C07 TSE:4516 and TWSE:3022.
