Top Dividend Stocks To Consider In January 2025

As we step into January 2025, global markets are experiencing a wave of optimism, driven by cooling inflation and robust bank earnings in the U.S., alongside hopes for continued interest rate cuts in Europe. Major indices have rebounded strongly, with value stocks leading the charge amid rising oil prices and profit-taking in technology shares. In this environment, dividend stocks remain an attractive option for investors seeking steady income streams and potential capital appreciation, especially as they often exhibit resilience during periods of market volatility.

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.

Below we spotlight a couple of our favorites from our exclusive screener.

Société BIC (ENXTPA:BB)

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

Overview: Société BIC SA is a global manufacturer and seller of stationery, lighters, shavers, and other products with a market cap of €2.54 billion.

Operations: Société BIC's revenue segments include €823.20 million from Stationery-Human Expression, €811.20 million from Lighters-Flame for Life, and €542.60 million from Shavers-Blade Excellence.

Dividend Yield: 4.4%

Société BIC's dividend sustainability is supported by a reasonable payout ratio of 51.7% and a cash payout ratio of 40.9%, indicating coverage by both earnings and cash flows. However, its dividends have been volatile over the past decade, raising concerns about reliability despite recent growth. The company's dividend yield of 4.43% is below the top tier in France, but it trades at a significant discount to estimated fair value, suggesting potential upside if stability improves. Recent earnings show increased profitability with net income rising to €73.6 million in Q3 2024 from €59.8 million the previous year, providing some optimism for future payouts amidst ongoing volatility challenges.

• Delve into the full analysis dividend report here for a deeper understanding of Société BIC.
• Our valuation report unveils the possibility Société BIC's shares may be trading at a discount.

DKSH Holding (SWX:DKSH)

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

Overview: DKSH Holding AG offers market expansion services across Thailand, Greater China, Malaysia, Singapore, and the rest of the Asia Pacific as well as internationally with a market cap of CHF4.53 billion.

Operations: DKSH Holding AG generates its revenue from four main segments: Healthcare (CHF5.55 billion), Consumer Goods (CHF3.43 billion), Performance Materials (CHF1.38 billion), and Technology (CHF526.50 million).

Dividend Yield: 3.2%

DKSH Holding's dividend reliability is underscored by a decade of stable growth and a cash payout ratio of 45.8%, ensuring dividends are well-covered by cash flows. Though its yield of 3.19% is below the Swiss market's top tier, DKSH trades at an attractive discount to fair value, suggesting potential for appreciation. The recent launch of ConnectPlus in its healthcare unit may bolster operational efficiency and profitability, supporting future dividend sustainability amidst evolving market dynamics.

• Unlock comprehensive insights into our analysis of DKSH Holding stock in this dividend report.
• Insights from our recent valuation report point to the potential overvaluation of DKSH Holding shares in the market.

VERBUND (WBAG:VER)

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

Overview: VERBUND AG, with a market cap of €25.21 billion, operates by generating, trading, and selling electricity to energy exchange markets, traders, electric utilities and industrial companies as well as households and commercial customers.

Operations: VERBUND AG's revenue is primarily derived from its segments in Sales (€4.94 billion), Hydro (€3.58 billion), Grid (€1.74 billion), and New Renewables (€328 million).

Dividend Yield: 5.7%

VERBUND's dividend payments, though growing over the past decade, have been unstable and unreliable with significant volatility. Despite a payout ratio of 70.6% and a cash payout ratio of 65.6%, ensuring coverage by earnings and cash flows, its current yield of 5.66% falls short compared to Austria's top-tier dividend payers. Recent financials show declining sales and net income for Q3 2024, potentially impacting future dividend sustainability amidst forecasted earnings declines.

• Take a closer look at VERBUND's potential here in our dividend report.
• Our expertly prepared valuation report VERBUND implies its share price may be too high.

Key Takeaways

• Navigate through the entire inventory of 1983 Top Dividend Stocks here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Want To Explore Some Alternatives?

• 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.

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