In the midst of economic uncertainty and inflation concerns, global markets have experienced significant volatility, with U.S. stock indexes declining due to trade policy uncertainty and growth concerns. As investors navigate these turbulent times, dividend stocks can offer a measure of stability and income, making them an attractive option for those looking to weather market fluctuations while potentially benefiting from regular income streams.
Overview: Fomento Económico Mexicano, S.A.B. de C.V., primarily operates as a bottler of Coca-Cola trademark beverages through its subsidiaries and has a market capitalization of MX$638.02 billion.
Operations: Fomento Económico Mexicano, S.A.B. de C.V. generates revenue from several segments including Coca-Cola FEMSA with MX$279.79 billion, the Americas Proximity Division with MX$307.20 billion, the Europe Proximity Division with MX$49.76 billion, the Health Division with MX$79.76 billion, and the Fuel Division contributing MX$65.37 billion.
Dividend Yield: 7.2%
Fomento Económico Mexicano, S.A.B. de C.V. recently announced a 4.2% increase in ordinary dividends and an extraordinary dividend for 2025, reflecting steady growth in dividend payments over the past decade. While its payout ratio suggests dividends are covered by earnings, the cash payout ratio indicates potential concerns with free cash flow coverage. The company's dividend yield of 7.21% ranks it among the top quarter of Mexican market payers but sustainability remains a consideration due to cash flow constraints.
Overview: Yagami Inc. is a specialized trading company in Japan's educational market with a market cap of ¥16.84 billion.
Operations: Yagami Inc. generates revenue through its segments in Industrial Machine (¥2.61 billion), Scientific Equipment (¥5.65 billion), and Health and Medical Equipment (¥2.66 billion).
Dividend Yield: 5%
Yagami's dividend yield of 5.05% ranks in the top 25% of JP market payers, with stable and growing dividends over the past decade. However, its high payout ratio (100.2%) indicates dividends aren't covered by earnings, though a reasonable cash payout ratio (65.4%) suggests coverage by cash flows. Trading at 47.6% below fair value estimates offers potential value, but sustainability concerns persist due to earnings coverage issues despite steady profit growth of 9% annually over five years.
Overview: Nordic Group Limited, with a market cap of SGD141.66 million, is an investment holding company providing global solutions in system integration, maintenance, repair, overhaul, trading, precision engineering, scaffolding, insulation, petrochemical and environmental engineering as well as cleanroom and air and water engineering.
Operations: Nordic Group Limited generates revenue from Project Services and Maintenance Services, with contributions of SGD82.10 million and SGD81.85 million respectively.
Dividend Yield: 4.9%
Nordic Group's dividend yield of 4.93% is below the top quartile in Singapore, and its past decade shows volatility with over 20% annual drops at times. However, dividends are well-covered by earnings (39.9% payout ratio) and cash flows (42.8% cash payout ratio), suggesting sustainability despite instability concerns. Recent earnings growth to SGD 17.51 million supports this coverage, while a low P/E ratio of 8.1x indicates potential value relative to the market average of 11.8x.
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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 BMV:FEMSA UBD NSE:7488 and SGX:MR7.
