POSCO STEELEON And 2 Other Reliable Dividend Stocks To Boost Your Income
editorial-team@simplywallst.com (Simply Wall St)
4 min read
As global markets navigate a landscape marked by rate cuts from the ECB and SNB, alongside expectations for a Fed cut, investors are keenly observing the mixed performance across major indices. With inflationary pressures and labor market dynamics at play, dividend stocks emerge as a reliable option to provide steady income in uncertain times. In this context, understanding what makes a good dividend stock—such as consistent payout history and financial stability—becomes crucial for bolstering one's investment portfolio.
Top 10 Dividend Stocks
Name
Dividend Yield
Dividend Rating
Tsubakimoto Chain (TSE:6371)
4.25%
★★★★★★
Wuliangye YibinLtd (SZSE:000858)
3.25%
★★★★★★
CAC Holdings (TSE:4725)
4.76%
★★★★★★
Yamato Kogyo (TSE:5444)
4.10%
★★★★★★
Guangxi LiuYao Group (SHSE:603368)
3.25%
★★★★★★
Padma Oil (DSE:PADMAOIL)
7.44%
★★★★★★
Nihon Parkerizing (TSE:4095)
3.93%
★★★★★★
China South Publishing & Media Group (SHSE:601098)
Overview: POSCO STEELEON Co., Ltd. manufactures, processes, and sells steel products both in South Korea and internationally, with a market cap of approximately ₩177.32 billion.
Operations: POSCO STEELEON Co., Ltd. generates its revenue primarily from the Metal Processors and Fabrication segment, which amounts to approximately ₩1.21 billion.
Dividend Yield: 5.5%
POSCO STEELEON's dividend prospects show mixed signals. Despite a substantial earnings growth of 302.4% over the past year, its dividend history is volatile and has been unreliable over the last five years. However, dividends are well covered by both earnings (35.4% payout ratio) and cash flows (24.2% cash payout ratio). Trading at 86.4% below estimated fair value, its yield ranks in the top 25% within Korea's market at 5.46%.
Overview: Sakai Heavy Industries, Ltd. manufactures and sells construction equipment and industrial machinery both in Japan and internationally, with a market cap of ¥20.01 billion.
Operations: Sakai Heavy Industries, Ltd. generates revenue from various regions, with ¥21.92 billion from Japan, ¥8.99 billion from the United States, ¥5.74 billion from Indonesia, and ¥1.84 billion from China.
Dividend Yield: 6.2%
Sakai Heavy Industries' dividend outlook presents challenges. Despite a high yield of 6.2%, dividends are not covered by free cash flows and have been volatile, with recent guidance showing a significant decrease to JPY 60.50 per share for the year ending March 2025 from JPY 195.00 previously. Earnings are forecasted to decline, impacting sustainability, though the payout ratio is reasonable at 53.9%. The stock trades at a favorable price-to-earnings ratio of 9.1x below the JP market average.
Overview: Global Brands Manufacture Ltd., along with its subsidiaries, operates in the production of printed circuit boards (PCB) and provides electronic manufacturing services (EMS) in Taiwan, with a market cap of NT$25.47 billion.
Operations: Global Brands Manufacture Ltd.'s revenue segments include NT$14.10 billion from printed circuit boards (PCB) production and NT$7.68 billion from electronic manufacturing services (EMS).
Dividend Yield: 6.1%
Global Brands Manufacture Ltd. offers a compelling dividend yield of 6.15%, placing it in the top 25% within Taiwan's market. The company's dividend payments are supported by earnings and cash flows, with payout ratios of 51% and 71.5%, respectively, suggesting coverage is adequate. However, its dividend history is unstable due to volatility and an eight-year track record. Recent earnings showed declines in sales and net income, which may affect future payouts' stability.
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 KOSE:A058430 TSE:6358 and TWSE:6191.
