Top Dividend Stocks To Consider In January 2025

As global markets experience a rebound, driven by easing core U.S. inflation and strong bank earnings, investors are increasingly turning their attention to dividend stocks for potential stability and income generation. In this environment of cooling inflation and positive economic signals, selecting dividend stocks with a history of consistent payouts can be an attractive strategy for those seeking to balance growth with income in their portfolios.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Wuliangye YibinLtd (SZSE:000858)	3.63%	★★★★★★
CAC Holdings (TSE:4725)	4.69%	★★★★★★
Yamato Kogyo (TSE:5444)	4.08%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.48%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.12%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.49%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.71%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.59%	★★★★★★
Nihon Parkerizing (TSE:4095)	4.01%	★★★★★★
E J Holdings (TSE:2153)	4.09%	★★★★★★

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

Let's take a closer look at a couple of our picks from the screened companies.

Cairo Communication (BIT:CAI)

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

Overview: Cairo Communication S.p.A. is a communication company operating mainly in Italy and Spain, with a market cap of €333.35 million.

Operations: Cairo Communication S.p.A. generates revenue through its segments, including RCS (€861.70 million), Advertising (€357.40 million), Magazine Publishing Cairo Editore (€81.40 million), and TV Publishing La7 and Network Operator (€120 million).

Dividend Yield: 6.5%

Cairo Communication demonstrates a mixed dividend profile. While the company's payout ratio of 50.2% suggests dividends are covered by earnings, and a cash payout ratio of 23.8% indicates strong cash flow support, its dividend history is volatile with declining payments over the past decade. However, its current yield of 6.45% ranks in the top quartile in Italy, offering attractive income potential despite past unreliability and fluctuating payouts.

• Click here and access our complete dividend analysis report to understand the dynamics of Cairo Communication.
• Our comprehensive valuation report raises the possibility that Cairo Communication is priced lower than what may be justified by its financials.

Lao Feng Xiang (SHSE:600612)

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

Overview: Lao Feng Xiang Co., Ltd. operates in the jewelry industry both in the People's Republic of China and internationally, with a market cap of CN¥21.75 billion.

Operations: Lao Feng Xiang Co., Ltd.'s revenue is primarily derived from its operations in the jewelry industry within China and international markets.

Dividend Yield: 3.8%

Lao Feng Xiang offers a compelling dividend profile with a yield of 3.77%, ranking in the top 25% in China. The company's dividends are well-supported by both earnings, with a payout ratio of 50.4%, and cash flows, indicated by a low cash payout ratio of 15.9%. Despite recent declines in sales and net income for the first nine months of 2024, its dividend payments have been stable and growing over the past decade.

• Take a closer look at Lao Feng Xiang's potential here in our dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Lao Feng Xiang shares in the market.

Daido Steel (TSE:5471)

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

Overview: Daido Steel Co., Ltd. manufactures and sells steel products both in Japan and internationally, with a market cap of ¥243.91 billion.

Operations: Daido Steel Co., Ltd.'s revenue segments include Special Steel Products at ¥283.84 billion, Functional & Magnetic Materials at ¥218.14 billion, Autoparts & Industrial Machinery Parts at ¥141.85 billion, Distribution Service at ¥46.70 billion, and Engineering at ¥23.27 billion.

Dividend Yield: 4%

Daido Steel's dividend yield of 3.97% ranks in the top 25% of Japanese dividend payers, yet its dividends are not well-supported by cash flows, with a high cash payout ratio of 142.8%. Despite a low payout ratio of 32.1%, indicating earnings coverage, past volatility and unreliability raise concerns about sustainability. The recent share buyback program aims to enhance capital efficiency and shareholder returns, potentially impacting future dividend stability positively.

• Unlock comprehensive insights into our analysis of Daido Steel stock in this dividend report.
• Upon reviewing our latest valuation report, Daido Steel's share price might be too pessimistic.

Make It Happen

• Unlock more gems! Our Top Dividend Stocks screener has unearthed 1980 more companies for you to explore.Click here to unveil our expertly curated list of 1983 Top Dividend Stocks.
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Ready For A Different Approach?

• 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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