Top Dividend Stocks To Consider In January 2025

As global markets grapple with inflation fears and political uncertainties, investors are witnessing a choppy start to the year, marked by fluctuating indices and mixed economic signals. Amidst this backdrop, dividend stocks can offer a measure of stability and potential income, making them an appealing consideration for those navigating these turbulent times.

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.

We're going to check out a few of the best picks from our screener tool.

Abu Dhabi Commercial Bank PJSC (ADX:ADCB)

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

Overview: Abu Dhabi Commercial Bank PJSC, along with its subsidiaries, offers consumer banking, wholesale banking, and treasury and investment services in the United Arab Emirates and internationally, with a market cap of AED79.91 billion.

Operations: Abu Dhabi Commercial Bank PJSC generates revenue through several key segments, including Retail Banking (AED4.69 billion), Investments and Treasury (AED5.04 billion), and Corporate and Investment Banking (AED5.71 billion), as well as Property Management services (AED745.08 million).

Dividend Yield: 5.1%

Abu Dhabi Commercial Bank PJSC has demonstrated a consistent increase in dividend payments over the past decade, though they have been volatile. The current payout ratio of 46.9% suggests dividends are well covered by earnings, with forecasts indicating continued coverage. Despite a relatively low dividend yield compared to top-tier payers in the AE market, ADCB offers value with a price-to-earnings ratio of 9.2x below the market average. However, a high level of bad loans at 2.6% remains a concern for potential investors seeking stability in dividend stocks.

• Take a closer look at Abu Dhabi Commercial Bank PJSC's potential here in our dividend report.
• Upon reviewing our latest valuation report, Abu Dhabi Commercial Bank PJSC's share price might be too optimistic.

Banco de Sabadell (BME:SAB)

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

Overview: Banco de Sabadell, S.A. offers a range of banking products and services to personal, business, and private customers both in Spain and internationally, with a market cap of €11.33 billion.

Operations: Banco de Sabadell's revenue segments include €3.95 billion from its Banking Business in Spain (including Real Estate Asset Transformation), €1.19 billion from its Banking Business in the UK, and €186 million from its Banking Business in Mexico.

Dividend Yield: 3.8%

Banco de Sabadell's dividend payments have been unreliable over the past decade, showing volatility with significant annual drops. However, its dividends are currently well covered by a low payout ratio of 39.6% and are forecast to remain sustainable at 50.2% in three years. Despite a lower yield of 3.82% compared to top Spanish payers, recent earnings growth and valuation below fair value offer potential appeal for investors considering dividend stocks amidst high bad loans at 3%.

• Click here and access our complete dividend analysis report to understand the dynamics of Banco de Sabadell.
• According our valuation report, there's an indication that Banco de Sabadell's share price might be on the cheaper side.

Exacompta Clairefontaine (ENXTPA:ALEXA)

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

Overview: Exacompta Clairefontaine S.A. is involved in the production, finishing, and formatting of papers across France, Europe, and internationally with a market cap of €162.93 million.

Operations: Exacompta Clairefontaine S.A. generates its revenue from two main segments: Paper, contributing €354.56 million, and Conversion, accounting for €597.58 million.

Dividend Yield: 4.7%

Exacompta Clairefontaine's dividend payments are well-supported by a low payout ratio of 35.4%, indicating sustainability through earnings and cash flows, with a cash payout ratio of 10.7%. The company offers a reliable dividend yield of 4.65%, although it is below the top quartile in France. Over the past decade, dividends have been stable and growing, enhancing their appeal despite trading significantly below estimated fair value and recent declines in profit margins from 6.5% to 2.6%.

• Get an in-depth perspective on Exacompta Clairefontaine's performance by reading our dividend report here.
• Our valuation report unveils the possibility Exacompta Clairefontaine's shares may be trading at a discount.

Taking Advantage

• 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.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

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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