Top Dividend Stocks To Consider In January 2025

As global markets navigate choppy waters with inflation concerns and political uncertainties weighing on U.S. equities, investors are keeping a close eye on the Federal Reserve's rate decisions and corporate earnings releases. Amidst this backdrop, dividend stocks can offer a measure of stability and income potential, making them an attractive consideration for investors seeking to weather volatile market conditions.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Peoples Bancorp (NasdaqGS:PEBO)	5.27%	★★★★★★
Tsubakimoto Chain (TSE:6371)	4.39%	★★★★★★
Guaranty Trust Holding (NGSE:GTCO)	6.38%	★★★★★★
CAC Holdings (TSE:4725)	4.73%	★★★★★★
Yamato Kogyo (TSE:5444)	4.11%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.44%	★★★★★★
GakkyushaLtd (TSE:9769)	4.38%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.61%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.61%	★★★★★★
E J Holdings (TSE:2153)	3.99%	★★★★★★

Click here to see the full list of 1994 stocks from our Top Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Huishang Bank (SEHK:3698)

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

Overview: Huishang Bank Corporation Limited, along with its subsidiaries, offers a range of commercial banking products and services in the People's Republic of China and has a market cap of HK$33.34 billion.

Operations: Huishang Bank Corporation Limited generates revenue through its diverse commercial banking operations and services in China.

Dividend Yield: 6.3%

Huishang Bank's dividend yield is relatively low at 6.3% compared to the top 25% of Hong Kong market payers. Despite a volatile dividend history, recent payouts are covered by earnings with a low payout ratio of 14%, suggesting sustainability. The stock trades significantly below its estimated fair value, indicating potential undervaluation. Recent board changes and auditor transitions do not appear to impact the bank's financial stability or dividend policy directly.

• Click here and access our complete dividend analysis report to understand the dynamics of Huishang Bank.
• Our valuation report unveils the possibility Huishang Bank's shares may be trading at a discount.

Zhengzhou Coal Mining Machinery Group (SHSE:601717)

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

Overview: Zhengzhou Coal Mining Machinery Group Company Limited, along with its subsidiaries, manufactures and sells coal mining and excavating equipment in China, with a market cap of CN¥21.42 billion.

Operations: Zhengzhou Coal Mining Machinery Group's revenue is primarily derived from its coal manufacturing segment, which accounts for CN¥19.18 billion, and its automotive parts board segment, contributing CN¥17.81 billion.

Dividend Yield: 6.4%

Zhengzhou Coal Mining Machinery Group's dividend yield of 6.43% ranks in the top 25% of the Chinese market, with payouts covered by a low payout ratio of 38.6%, indicating sustainability despite a historically volatile and unreliable dividend track record. Trading significantly below estimated fair value suggests potential undervaluation. Recent board resignations are unlikely to affect financial stability or dividend policy directly, as earnings have shown robust growth over the past year.

• Navigate through the intricacies of Zhengzhou Coal Mining Machinery Group with our comprehensive dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Zhengzhou Coal Mining Machinery Group shares in the market.

CIMC Vehicles (Group) (SZSE:301039)

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

Overview: CIMC Vehicles (Group) Co., Ltd. designs, develops, produces, and sells specialty vehicles, semi-trailers, spare parts, and related technical services in China with a market cap of CN¥16.34 billion.

Operations: CIMC Vehicles (Group) Co., Ltd. generates revenue through the manufacturing and sale of specialty vehicles, semi-trailers, and spare parts, as well as offering related technical services.

Dividend Yield: 6.2%

CIMC Vehicles (Group) Co., Ltd. offers a dividend yield of 6.22%, placing it among the top 25% in the Chinese market. Despite this, its dividend history is unstable and has shown volatility with significant annual drops. The company's dividends are covered by earnings and cash flows, with payout ratios of 54.1% and 69.8%, respectively, suggesting sustainability despite recent declines in net income from CNY 2,277.3 million to CNY 842.61 million year-over-year.

• Dive into the specifics of CIMC Vehicles (Group) here with our thorough dividend report.
• Upon reviewing our latest valuation report, CIMC Vehicles (Group)'s share price might be too pessimistic.

Next Steps

• Delve into our full catalog of 1994 Top Dividend Stocks here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Seeking Other Investments?

• 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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