As U.S. markets reach new heights with the Dow, S&P 500, and Nasdaq all hitting record highs, investor optimism is fueled by expectations of pro-growth policies from the incoming administration. In this buoyant environment, dividend stocks can offer a reliable income stream while potentially benefiting from overall market gains.
Overview: H World Group Limited operates leased and owned, manachised, and franchised hotels in the People's Republic of China with a market capitalization of approximately $10.34 billion.
Operations: H World Group Limited's revenue segments include Legacy DH at CN¥4.86 billion and Legacy-Huazhu at CN¥18.63 billion.
Dividend Yield: 4.7%
H World Group's dividend payments have been volatile and unreliable over the past six years, with a history of annual drops exceeding 20%. Despite this instability, dividends are sustainably covered by earnings and cash flows, with payout ratios of 74.4% and 57.2%, respectively. The company's dividend yield is in the top quartile among US payers, though its track record is short at just six years. Recent earnings show stable revenue growth but slight declines in net income year-over-year.
Overview: CompX International Inc. manufactures and sells security products and recreational marine components primarily in North America, with a market cap of approximately $340.48 million.
Operations: CompX International Inc. generates revenue from two main segments: Security Products, contributing $121.46 million, and Marine Components, accounting for $29.23 million.
Dividend Yield: 4.3%
CompX International offers a solid dividend profile with stable payouts over the past decade, supported by a sustainable payout ratio of 75.4% from earnings and 53% from cash flows. Its recent quarterly dividend of US$0.30 per share reflects reliability despite declining sales and net income in Q3 2024. Trading significantly below estimated fair value, it maintains an attractive yield of 4.28%, ranking in the top quartile among US dividend payers, though insider selling may warrant caution.
Overview: Civeo Corporation offers hospitality services to the natural resource industry in Canada, Australia, and the United States with a market cap of $323.11 million.
Operations: Civeo Corporation's revenue is primarily derived from its operations in Australia, generating $406.31 million, and Canada, contributing $277.15 million.
Dividend Yield: 4.3%
Civeo's dividend, with a cash payout ratio of 16.2%, is well covered by cash flows, though its history shows volatility and decline over the past decade. Despite a recent quarterly dividend declaration of US$0.25 per share, Civeo reported a net loss for Q3 2024 and declining earnings are forecasted. The company trades at 72.2% below estimated fair value and has completed significant share buybacks totaling US$17.6 million, which may impact future dividend stability.
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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.
