As global markets experience a surge, with U.S. stock indexes nearing record highs and European indices buoyed by positive economic signals, investors are closely monitoring inflation data that could influence future rate policies. In this dynamic environment, dividend stocks like Kasikornbank offer potential stability and income generation, making them an attractive consideration for those looking to balance growth with consistent returns in their portfolios.
Overview: Kasikornbank Public Company Limited, along with its subsidiaries, offers commercial banking products and services both in Thailand and internationally, with a market cap of THB385.02 billion.
Operations: Kasikornbank's revenue segments include Retail Business at THB69.98 billion, Corporate Business at THB87.72 billion, Muang Thai Group Holding Business at THB13.42 billion, and Treasury and Capital Markets Business and World Business Group at THB32.99 billion.
Dividend Yield: 4.6%
Kasikornbank's dividend payments are well covered by its earnings, with a current payout ratio of 37.4%, projected to remain sustainable at 44.2% in three years. Although the bank's dividends have increased over the past decade, they have been volatile with occasional drops over 20%. Despite trading below estimated fair value and offering good relative value compared to peers, its dividend yield of 4.62% is lower than top-tier payers in Thailand.
Overview: Torigoe Co., Ltd. manufactures and sells flours and related products in Japan, with a market capitalization of ¥17.97 billion.
Operations: Torigoe Co., Ltd.'s revenue primarily comes from its Food Products segment, which generated ¥26.17 billion.
Dividend Yield: 5.7%
Torigoe's dividend yield of 5.7% ranks in the top 25% of Japanese dividend payers, yet its sustainability is questionable with a payout ratio exceeding earnings at 100.5%. Although dividends have been stable and growing over the past decade, recent share price volatility poses risks. The cash payout ratio stands at 78.7%, indicating coverage by cash flows but not earnings. Trading significantly below estimated fair value suggests potential for capital appreciation amidst these challenges.
Overview: Hirogin Holdings, Inc. is a bank holding company for The Hiroshima Bank, Ltd., with a market cap of ¥366.87 billion.
Operations: Hirogin Holdings, Inc. generates its revenue primarily through its operations as a bank holding company for The Hiroshima Bank, Ltd.
Dividend Yield: 3.8%
Hirogin Holdings plans to increase its annual dividend to ¥23.50 per share from ¥19.00, reflecting growth but with a history of volatility and unreliability over the past decade. The payout ratio is a manageable 38.6%, suggesting dividends are covered by earnings, though sustainability concerns remain due to insufficient data on future coverage. With earnings projected at ¥35 billion and a P/E ratio of 12.5x below the market average, Hirogin presents an attractive valuation despite these challenges.
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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 SET:KBANK TSE:2009 and TSE:7337.
