As global markets experience a boost from cooling inflation and strong bank earnings, major indices like the S&P 500 and Dow Jones Industrial Average have recorded significant gains. Amidst this backdrop of optimism, investors are increasingly turning their attention to dividend stocks as a reliable source of income, particularly in times of economic uncertainty.
Overview: SiS Distribution (Thailand) Public Company Limited, with a market cap of THB8.84 billion, operates in Thailand distributing computer components, smartphones, and office automation equipment.
Operations: SiS Distribution (Thailand) Public Company Limited generates revenue from various segments, including Phones at THB5.25 billion, Consumer Products at THB8.37 billion, Value Add Products at THB5.29 billion, and Commercial Products at THB6.36 billion.
Dividend Yield: 4.1%
SiS Distribution (Thailand) offers a reliable dividend history with stable and growing payments over the past decade. Despite a high debt level, its dividends are well-covered by both earnings and cash flows, with a payout ratio of 57.3% and cash payout ratio of 26.3%. However, the dividend yield of 4.08% is lower than the top quartile in Thailand's market. Recent earnings showed slight declines in net income, but sales have increased year-over-year.
Overview: Septeni Holdings Co., Ltd. operates in digital marketing and media platform businesses both in Japan and internationally, with a market cap of ¥79.03 billion.
Operations: Septeni Holdings Co., Ltd. generates revenue through its subsidiaries by engaging in digital marketing and media platform operations across Japan and international markets.
Dividend Yield: 8.2%
Septeni Holdings' dividend yield is strong at 8.16%, placing it in the top 25% of JP market payers, but its sustainability is questionable due to a high cash payout ratio of 125.4%. Dividends have been volatile, with past drops over 20%, and are not well-covered by free cash flows despite a low payout ratio of 19.7%. Recent segment reorganization aims to boost growth amid lowered earnings guidance for fiscal year-end December 2024.
Overview: Kamei Corporation is a general trading company operating both in Japan and internationally, with a market cap of ¥58.15 billion.
Operations: Kamei Corporation's revenue is primarily derived from its Energy Business at ¥279.10 billion, followed by the Overseas/Trade Business at ¥86.78 billion, Automotive Related Business at ¥75.29 billion, Construction-Related Business at ¥52.50 billion, Food Business at ¥36.26 billion, Pharmacy Business at ¥19.71 billion, and Pet-Related Business at ¥13.97 billion.
Dividend Yield: 3.2%
Kamei's dividend payments have consistently grown over the past decade, supported by a low payout ratio of 18.6% and a cash payout ratio of 7.6%, indicating strong earnings and cash flow coverage. Trading significantly below estimated fair value, Kamei offers an attractive entry point for investors seeking stability, as dividends have been reliable and stable with minimal volatility. However, its 3.17% yield is lower than the top dividend payers in Japan's market.
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:SIS TSE:4293 and TSE:8037.
