In a week marked by significant economic reports and fluctuating stock indices, global markets have shown mixed performance, with the U.S. major indexes finishing mostly lower amid an exceptionally busy earnings period. As growth stocks lagged behind value shares and small-caps outperformed large-caps, investors are increasingly turning their attention to dividend stocks as a potential source of steady income amidst these volatile conditions. In such an environment, a good dividend stock is typically characterized by its ability to provide consistent payouts and demonstrate resilience in the face of economic uncertainty.
Top 10 Dividend Stocks
Name
Dividend Yield
Dividend Rating
Tsubakimoto Chain (TSE:6371)
4.25%
★★★★★★
Mitsubishi Shokuhin (TSE:7451)
3.85%
★★★★★★
Guaranty Trust Holding (NGSE:GTCO)
6.72%
★★★★★★
Wuliangye YibinLtd (SZSE:000858)
3.06%
★★★★★★
China South Publishing & Media Group (SHSE:601098)
Overview: The People's Insurance Company (Group) of China Limited is an investment holding company that offers insurance products and services in the People’s Republic of China and Hong Kong, with a market cap of approximately HK$331.14 billion.
Operations: The People's Insurance Company (Group) of China Limited generates revenue through its diverse portfolio of insurance products and services across the People’s Republic of China and Hong Kong.
Dividend Yield: 3.3%
People's Insurance Company (Group) of China has shown strong earnings growth, with net income reaching CNY 36.33 billion for the first nine months of 2024, up from CNY 20.50 billion a year ago. Despite its low dividend yield of 3.33% compared to peers, dividends are well-covered by earnings and cash flows due to a payout ratio of 25.3% and cash payout ratio of 6.6%. However, its dividend history is volatile over the past decade.
Overview: Qingdao Port International Co., Ltd. operates the Port of Qingdao and has a market cap of HK$57.41 billion.
Operations: Qingdao Port International Co., Ltd. generates its revenue from various segments including container handling, bulk cargo handling, logistics and port value-added services.
Dividend Yield: 5.7%
Qingdao Port International's dividend payments have been volatile over the past decade, despite a low payout ratio of 37.1% suggesting strong earnings coverage. The cash payout ratio stands at 78.6%, indicating dividends are supported by cash flows as well. Trading at a favorable price-to-earnings ratio of 6.6x compared to the Hong Kong market average, its recent net income for nine months reached CNY 3.93 billion, showing stable financial performance amidst executive changes and index inclusion events.
Overview: Boai NKY Medical Holdings Ltd. operates in the fine chemical and medical care sectors both in China and internationally, with a market cap of CN¥6.62 billion.
Operations: Boai NKY Medical Holdings Ltd. generates revenue from its operations in the fine chemical and medical care industries, serving both domestic and international markets.
Dividend Yield: 4.9%
Boai NKY Medical Holdings offers a high dividend yield of 4.88%, ranking in the top 25% of CN market payers, but its dividends have been volatile and not well-covered by cash flows, with a high cash payout ratio of 258.4%. Despite this, the payout ratio of 77% indicates coverage by earnings. The company's price-to-earnings ratio is attractive at 16.6x compared to the broader CN market average, suggesting potential value for investors seeking dividend income amidst recent declines in revenue and net income.
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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 SEHK:1339 SEHK:6198 and SZSE:300109.
