3 Dividend Stocks To Consider With Yields Up To 7.4%

In a week marked by tariff uncertainties and softer-than-expected job growth, global markets experienced mixed performances, with U.S. indices mostly declining while European stocks showed resilience. Amid these fluctuating conditions, dividend stocks can offer investors potential stability and income through regular payouts, making them an attractive consideration in times of economic uncertainty.

Top 10 Dividend Stocks

Click here to see the full list of 1973 stocks from our Top Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Sipef (ENXTBR:SIP)

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

Overview: Sipef NV is an agro-industrial company with a market cap of €586.52 million.

Operations: Sipef NV generates its revenue from various segments, including Palm ($386.46 million), Bananas and Horticulture ($38.59 million), Tea ($2.79 million), Rubber ($0.59 million), and Corporate activities ($1.37 million).

Dividend Yield: 3.4%

Sipef's dividend payments are well-covered by earnings, with a payout ratio of 34.5%, and by cash flows, with a cash payout ratio of 71.5%. However, the dividends have been volatile over the past decade and are considered unreliable due to inconsistent growth. The current yield is lower than the top Belgian dividend payers at 3.38%. Despite this, Sipef's price-to-earnings ratio of 9.5x suggests it may offer good value relative to the market average.

• Click here to discover the nuances of Sipef with our detailed analytical dividend report.
• Our comprehensive valuation report raises the possibility that Sipef is priced higher than what may be justified by its financials.

Compagnie Générale des Établissements Michelin Société en commandite par actions (ENXTPA:ML)

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

Overview: Compagnie Générale des Établissements Michelin Société en commandite par actions is a global manufacturer and seller of tires with a market capitalization of approximately €22.92 billion.

Operations: The company generates revenue through its Automotive and Related Distribution segment (€14.16 billion), Road Transportation and Related Distribution segment (€6.84 billion), and Specialty Businesses and Related Distribution segment (€6.74 billion).

Dividend Yield: 4%

Compagnie Générale des Établissements Michelin Société en commandite par actions has announced a dividend of €1.38 per share, with coverage by earnings and cash flows at payout ratios of 50.2% and 32.4%, respectively, indicating sustainability. However, its dividend history is marked by volatility over the past decade, reflecting unreliability despite growth in payments during this period. The yield of 3.96% is below the French market's top tier, but the stock trades significantly below estimated fair value.

• Navigate through the intricacies of Compagnie Générale des Établissements Michelin Société en commandite par actions with our comprehensive dividend report here.
• Upon reviewing our latest valuation report, Compagnie Générale des Établissements Michelin Société en commandite par actions' share price might be too optimistic.

Bayerische Motoren Werke (XTRA:BMW)

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

Overview: Bayerische Motoren Werke Aktiengesellschaft develops, manufactures, and sells automobiles, motorcycles, and related spare parts and accessories globally with a market cap of €47.60 billion.

Operations: Bayerische Motoren Werke's revenue is primarily derived from its Automotive segment at €128.15 billion, followed by Financial Services at €38.10 billion, and Motorcycles at €3.21 billion.

Dividend Yield: 7.4%

Bayerische Motoren Werke's dividend yield of 7.87% ranks in the top 25% of German payers, yet its sustainability is questionable due to lack of free cash flow coverage and volatile past payments. Despite a low payout ratio of 36%, indicating coverage by earnings, the dividends have been unreliable over the last decade. The stock trades at a good value relative to peers and below its estimated fair value, but financial positioning remains strained with debt not well covered by operating cash flow.

• Click to explore a detailed breakdown of our findings in Bayerische Motoren Werke's dividend report.
• According our valuation report, there's an indication that Bayerische Motoren Werke's share price might be on the cheaper side.

Make It Happen

• Embark on your investment journey to our 1973 Top Dividend Stocks selection here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
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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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