Top Dividend Stocks To Consider In January 2025

As global markets respond to easing inflation and robust bank earnings, major U.S. stock indexes have rebounded, with value stocks notably outperforming growth shares. This positive momentum is echoed in Europe and China, where slower-than-expected inflation and strong economic data have fueled hopes for continued interest rate cuts. In this environment of cautious optimism, dividend stocks can offer a stable income stream and potential for capital appreciation, making them an attractive consideration for investors seeking to navigate the current market dynamics.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Peoples Bancorp (NasdaqGS:PEBO)	5.11%	★★★★★★
Tsubakimoto Chain (TSE:6371)	4.34%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.50%	★★★★★★
CAC Holdings (TSE:4725)	4.69%	★★★★★★
Southside Bancshares (NYSE:SBSI)	4.49%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.50%	★★★★★★
GakkyushaLtd (TSE:9769)	4.46%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.49%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.68%	★★★★★★
DoshishaLtd (TSE:7483)	3.87%	★★★★★★

Click here to see the full list of 1983 stocks from our Top Dividend Stocks screener.

We'll examine a selection from our screener results.

Aedas Homes (BME:AEDAS)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Aedas Homes, S.A. is a company that develops residential properties in Spain and has a market capitalization of approximately €1.10 billion.

Operations: Aedas Homes, S.A. generates its revenue primarily from property development, amounting to €1.22 billion.

Dividend Yield: 9.7%

Aedas Homes offers a high dividend yield of 9.65%, placing it among the top 25% in Spain, yet its dividends have been unreliable over the past four years. Despite this volatility, dividends are well-covered by earnings and cash flows, with low payout ratios of 8% and 37.2%, respectively. The company trades at good value compared to peers but carries significant debt. Recent earnings surged to €24.66 million for H1 2024 from €3.57 million a year prior, indicating potential financial strength despite expected future declines in earnings.

• Click here to discover the nuances of Aedas Homes with our detailed analytical dividend report.
• The analysis detailed in our Aedas Homes valuation report hints at an deflated share price compared to its estimated value.

KBC Group (ENXTBR:KBC)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: KBC Group NV is a company that offers integrated bank-insurance services mainly to retail, private banking, small and medium-sized enterprises, and mid-cap clients, with a market cap of approximately €29.23 billion.

Operations: KBC Group's revenue segments are comprised of €6.39 billion from the Belgium Business, €2.29 billion from the Czech Republic Business, and contributions from International Markets including €1.13 billion from Hungary, €791 million from Bulgaria, and €486 million from Slovakia.

Dividend Yield: 5.5%

KBC Group's dividend yield of 5.53% is lower than the top quartile in Belgium, and its dividends have been volatile over the past decade. Despite this instability, dividends are covered by a reasonable payout ratio of 57.8%. The company has a high level of bad loans at 2.2%, with a low allowance for these loans at 58%. KBC trades at a significant discount to estimated fair value, although its earnings growth is modestly forecasted at 2.44% annually.

• Dive into the specifics of KBC Group here with our thorough dividend report.
• Insights from our recent valuation report point to the potential undervaluation of KBC Group shares in the market.

Burkhalter Holding (SWX:BRKN)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Burkhalter Holding AG, with a market cap of CHF1.02 billion, operates through its subsidiaries to provide electrical engineering services to the construction sector primarily in Switzerland.

Operations: Burkhalter Holding AG generates its revenue of CHF1.18 billion primarily from providing electrical engineering services.

Dividend Yield: 4.6%

Burkhalter Holding's dividend yield of 4.57% ranks among the top 25% in the Swiss market, supported by a reasonable cash payout ratio of 59.7%. Despite this, its dividend history over the past decade has been volatile and unreliable. The company's earnings have grown by 10.3% over the last year and are expected to continue growing at a rate of 4.01% annually, although it carries a high level of debt.

• Click to explore a detailed breakdown of our findings in Burkhalter Holding's dividend report.
• Our expertly prepared valuation report Burkhalter Holding implies its share price may be too high.

Seize The Opportunity

• Reveal the 1983 hidden gems among our Top Dividend Stocks screener with a single click here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com