In an exceptionally busy week for global markets, major indices like the Nasdaq Composite and S&P MidCap 400 Index hit record highs before retreating amid mixed earnings reports and economic data. As investors navigate this volatile landscape, dividend stocks offer a potential source of steady income, especially when growth stocks are underperforming. A good dividend stock often combines a reliable payout history with strong fundamentals, providing stability in uncertain times.
Top 10 Dividend Stocks
Name
Dividend Yield
Dividend Rating
Tsubakimoto Chain (TSE:6371)
4.31%
★★★★★★
Yamato Kogyo (TSE:5444)
4.12%
★★★★★★
Mitsubishi Research Institute (TSE:3636)
3.83%
★★★★★★
Financial Institutions (NasdaqGS:FISI)
5.03%
★★★★★★
China South Publishing & Media Group (SHSE:601098)
Overview: Toyota Caetano Portugal, S.A. imports, assembles, and commercializes light and heavy vehicles with a market cap of €201.25 million.
Operations: Toyota Caetano Portugal, S.A.'s revenue segments include €764.41 million from Domestic Motor Vehicles Commercialization, €61.96 million from External Motor Vehicles Industry, €28.15 million from External Motor Vehicles Commercialization, €24.70 million from Domestic Motor Vehicles Services, and various other contributions such as Domestic Industrial Equipment Machines at €12.25 million and smaller amounts in rental and services categories.
Dividend Yield: 5.2%
Toyota Caetano Portugal's recent earnings growth of 40.2% reflects a positive financial trajectory, with sales reaching €304.35 million for the half-year ending June 2024. Despite this growth, the company's dividend history is marked by volatility, with past drops exceeding 20%. However, dividends are well-covered by earnings and cash flows, supported by a payout ratio of 47.2% and a cash payout ratio of 65.8%. The current dividend yield is below Portugal's top tier at 5.22%.
Overview: WINS Co., Ltd. offers information security solutions and services in South Korea with a market cap of ₩159.23 billion.
Operations: WINS Co., Ltd. generates revenue of ₩104.58 billion from its security software and services segment in South Korea.
Dividend Yield: 3.9%
WINS Co., Ltd has a stable dividend payout, backed by a low payout ratio of 31.4% and cash flow coverage at 32%, despite only five years of dividend history. Its yield is in the top 25% of the KR market. However, recent earnings showed a decline in net income to KRW 3.75 billion for Q2 compared to last year, and it was dropped from the S&P Global BMI Index in September 2024.
Overview: Ya Horng Electronic Co., Ltd. is engaged in the development, manufacturing, and sale of audio products, household appliances, and healthcare products both in Taiwan and internationally, with a market cap of NT$5.29 billion.
Operations: Ya Horng Electronic Co., Ltd.'s revenue segments include NT$3.34 billion from Taiwan's Operational Headquarters and NT$1.37 billion from Production Factories in China and Southeast Asia.
Dividend Yield: 6.6%
Ya Horng Electronic's dividend yield is among the top 25% in Taiwan, supported by a cash payout ratio of 42.7%, indicating strong cash flow coverage. However, its dividend history over the past decade has been volatile and unreliable, with fluctuations exceeding 20%. Despite this instability, dividends are currently covered by earnings with an 83.6% payout ratio. Recent Q2 earnings showed slight growth in sales and net income compared to last year.
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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 ENXTLS:SCT KOSDAQ:A136540 and TWSE:6201.
