As global markets celebrate the Federal Reserve's first rate cut in over four years, U.S. stocks have surged to new highs, reflecting a broad-based rally across major indices. With this optimistic backdrop, investors are increasingly looking for stable income sources, making dividend stocks an attractive option. In such a dynamic market environment, good dividend stocks are those that offer consistent payouts and have strong financial health to weather economic shifts. Here are three top dividend stocks to consider for steady income in September 2024.
Overview: C&D International Investment Group Limited is an investment holding company involved in property development, real estate industry chain investment services, and industry investment activities across Mainland China, Hong Kong, Macau, Taiwan, and internationally with a market cap of HK$25.54 billion.
Operations: The company's revenue segments include Property Development and Property Management and Other Related Services, which generated CN¥142.82 billion.
Dividend Yield: 9.1%
C&D International Investment Group's dividend yield is in the top 25% of Hong Kong market payers at 9.12%, but its payments have been volatile and not well covered by free cash flows. The payout ratio stands at a reasonable 52.6%, yet earnings and cash flows do not fully cover dividends, raising sustainability concerns. Recent financials show declining net income and diluted earnings per share, while debt coverage remains weak, indicating potential risks for dividend investors.
Overview: Kweichow Moutai Co., Ltd. produces and sells liquor products in China and internationally, with a market cap of approximately CN¥1.76 trillion.
Operations: Kweichow Moutai's primary revenue segment is its liquor products, generating CN¥160.05 billion.
Dividend Yield: 3.3%
Kweichow Moutai offers stable and growing dividends, with a payout ratio of 48.2% covered by earnings and an 89.6% cash payout ratio. Over the past decade, dividends have been reliable and increased consistently. The company pays a high dividend yield of 3.27%, placing it in the top 25% of CN market payers. Recent news includes a CNY 6 billion share repurchase program, signaling confidence in its financial health despite high cash flow utilization for dividends.
Overview: BIEM.L.FDLKK Garment Co., Ltd. operates in the research, development, and design of branded apparel, along with brand promotion, marketing network construction, and supply chain management in China, with a market cap of CN¥10.45 billion.
Operations: BIEM.L.FDLKK Garment Co., Ltd. generates CN¥3.76 billion from its Clothing Apparel segment.
Dividend Yield: 5%
BIEM.L.FDLKK Garment Co.,Ltd. recently reported half-year sales of CNY 1.94 billion and net income of CNY 479.2 million, showing growth from the previous year. The company announced a final cash dividend of CNY 10 per 10 shares for 2023, reflecting its commitment to returning value to shareholders. With a payout ratio of 58.5% and a cash payout ratio of 70.5%, dividends are well-covered by earnings and cash flows, though the dividend history is less than ten years old.
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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 SEHK:1908 SHSE:600519 and SZSE:002832.
