Top Dividend Stocks To Consider In January 2025

As global markets navigate a choppy start to 2025, with U.S. equities facing pressure from inflation concerns and political uncertainties, investors are increasingly turning their attention to dividend stocks as a potential source of stability and income. In such volatile times, selecting dividend stocks with strong fundamentals and consistent payout histories can be an effective strategy for those seeking to balance risk while generating steady returns.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.37%	★★★★★★
CAC Holdings (TSE:4725)	4.70%	★★★★★★
Yamato Kogyo (TSE:5444)	4.08%	★★★★★★
GakkyushaLtd (TSE:9769)	4.46%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.18%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.61%	★★★★★★
Nihon Parkerizing (TSE:4095)	4.01%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.58%	★★★★★★
E J Holdings (TSE:2153)	4.07%	★★★★★★
DoshishaLtd (TSE:7483)	3.93%	★★★★★★

Click here to see the full list of 1995 stocks from our Top Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Shanghai Baosight SoftwareLtd (SHSE:600845)

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

Overview: Shanghai Baosight Software Co., Ltd. offers industrial solutions in China and has a market capitalization of CN¥68.04 billion.

Operations: Shanghai Baosight Software Co., Ltd.'s revenue segments include providing industrial solutions in China.

Dividend Yield: 3%

Shanghai Baosight Software Ltd. offers a dividend yield of 3.01%, placing it in the top 25% of CN market payers, with stable and growing dividends over the past decade. However, its high payout ratios suggest dividends are not well covered by earnings or cash flows, raising sustainability concerns despite recent inclusion in major indices like the Shanghai Stock Exchange 180 Value Index and SSE 180 Index. Current trading is significantly below estimated fair value, indicating potential investment appeal amidst these challenges.

• Get an in-depth perspective on Shanghai Baosight SoftwareLtd's performance by reading our dividend report here.
• Our expertly prepared valuation report Shanghai Baosight SoftwareLtd implies its share price may be lower than expected.

Jilin Expressway (SHSE:601518)

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

Overview: Jilin Expressway Co., Ltd. operates in the investment, development, construction, operation, management, and maintenance of toll roads in Jilin Province with a market cap of CN¥5.05 billion.

Operations: Jilin Expressway Co., Ltd. primarily generates revenue through its subsidiaries' activities in the investment, development, construction, operation, management, and maintenance of toll roads in Jilin Province.

Dividend Yield: 3.4%

Jilin Expressway offers a dividend yield of 3.37%, ranking it in the top 25% of CN market payers. Despite this, its dividend track record is unstable, with payments being unreliable and volatile over the past decade. However, dividends are well covered by earnings and cash flows, with payout ratios at 31% and 29.5%, respectively. The stock trades at a significant discount to estimated fair value, presenting potential investment interest despite these inconsistencies.

• Delve into the full analysis dividend report here for a deeper understanding of Jilin Expressway.
• The analysis detailed in our Jilin Expressway valuation report hints at an deflated share price compared to its estimated value.

Sixt (XTRA:SIX2)

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

Overview: Sixt SE operates a global network offering mobility services to private and business customers through its corporate and franchise stations, with a market cap of €3.41 billion.

Operations: Sixt SE generates revenue through its operations in Europe (€1.52 billion), Germany (€1.24 billion), and North America (€1.27 billion).

Dividend Yield: 4.9%

Sixt offers a dividend yield of 4.88%, placing it among the top quartile in the German market. However, its dividends are not well supported by free cash flows, with a high cash payout ratio of 134.3%. Despite having increased over the past decade, dividend payments have been volatile and unreliable. The company's current payout ratio is 75.8%, indicating coverage by earnings but not cash flow, raising concerns about long-term sustainability despite forecasted profit growth.

• Navigate through the intricacies of Sixt with our comprehensive dividend report here.
• The analysis detailed in our Sixt valuation report hints at an inflated share price compared to its estimated value.

Make It Happen

• Delve into our full catalog of 1995 Top Dividend Stocks here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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.

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