Stock Analysis

Top Dividend Stocks To Consider In January 2025

TASE:BSEN
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As global markets navigate a turbulent start to 2025, marked by inflation concerns and political uncertainties, investors are closely watching economic indicators and central bank policies. Amidst this backdrop of fluctuating indices and resilient labor markets, dividend stocks continue to attract attention for their potential to provide steady income streams. In such volatile times, a strong dividend stock is often characterized by its ability to maintain consistent payouts while demonstrating financial stability and resilience against market headwinds.

Top 10 Dividend Stocks

NameDividend YieldDividend Rating
Wuliangye YibinLtd (SZSE:000858)3.52%★★★★★★
MISC Berhad (KLSE:MISC)5.10%★★★★★★
Yamato Kogyo (TSE:5444)4.10%★★★★★★
Padma Oil (DSE:PADMAOIL)7.56%★★★★★★
GakkyushaLtd (TSE:9769)4.40%★★★★★★
China South Publishing & Media Group (SHSE:601098)4.15%★★★★★★
Nihon Parkerizing (TSE:4095)4.03%★★★★★★
FALCO HOLDINGS (TSE:4671)6.56%★★★★★★
E J Holdings (TSE:2153)4.08%★★★★★★
DoshishaLtd (TSE:7483)3.88%★★★★★★

Click here to see the full list of 2004 stocks from our Top Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

First Tractor (SEHK:38)

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

Overview: First Tractor Company Limited specializes in the research, development, manufacture, and sale of agricultural and power machinery globally with a market cap of HK$13.21 billion.

Operations: First Tractor Company Limited generates revenue through its global operations in agricultural and power machinery, including the development, manufacturing, and sales of related products.

Dividend Yield: 4.8%

First Tractor's dividend payments have been volatile over the past decade, yet they are well-covered by both earnings and cash flows with payout ratios of 35.4% and 30%, respectively. Despite trading at a significant discount to estimated fair value, its dividend yield of 4.82% is below top-tier levels in Hong Kong. Recent executive changes, including a new CFO appointment, may influence future strategic directions but do not currently impact daily operations or dividend stability.

SEHK:38 Dividend History as at Jan 2025
SEHK:38 Dividend History as at Jan 2025

Qingdao East Steel Tower StockLtd (SZSE:002545)

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

Overview: Qingdao East Steel Tower Stock Co. Ltd, with a market cap of CN¥8.68 billion, manufactures and markets steel structure products in the People’s Republic of China.

Operations: Qingdao East Steel Tower Stock Co. Ltd's revenue is primarily derived from its steel structure products in the People’s Republic of China.

Dividend Yield: 4.3%

Qingdao East Steel Tower's dividend yield of 4.3% ranks in the top 25% of Chinese dividend payers, supported by a cash payout ratio of 40%. However, its dividends have been unstable and volatile over the past decade. Despite this, they are adequately covered by earnings with a payout ratio of 63.1%. Trading at a favorable price-to-earnings ratio of 14.7x compared to the market average, it presents good relative value.

SZSE:002545 Dividend History as at Jan 2025
SZSE:002545 Dividend History as at Jan 2025

Bet Shemesh Engines Holdings (1997) (TASE:BSEN)

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

Overview: Bet Shemesh Engines Holdings (1997) Ltd, with a market cap of ₪3.38 billion, manufactures and sells jet engine parts in Israel.

Operations: The company's revenue is derived from two primary segments: Engines, contributing $90.63 million, and Manufacturing of Parts, generating $169.29 million.

Dividend Yield: 9.9%

Bet Shemesh Engines Holdings offers a high dividend yield of 9.88%, placing it in the top 25% of Israeli dividend payers, but its sustainability is questionable due to a high cash payout ratio of 325.1%. Despite an increase in dividends over the past decade, payments have been volatile and unreliable. Recent earnings show net income has significantly decreased despite increased sales. The stock trades at 71.8% below its estimated fair value, suggesting potential undervaluation amidst financial challenges.

TASE:BSEN Dividend History as at Jan 2025
TASE:BSEN Dividend History as at Jan 2025

Summing It All Up

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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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