Stock Analysis

3 Reliable Dividend Stocks Yielding Up To 5%

BME:CABK
Source: Shutterstock

As global markets react to recent political developments and economic data, with U.S. stocks reaching record highs amid optimism over trade policies and AI investments, investors are increasingly seeking stability in their portfolios. In this environment, dividend stocks can offer a reliable income stream while potentially benefiting from market growth, making them an attractive option for those looking to balance risk and reward in uncertain times.

Top 10 Dividend Stocks

NameDividend YieldDividend Rating
Tsubakimoto Chain (TSE:6371)4.22%★★★★★★
CAC Holdings (TSE:4725)4.51%★★★★★★
Yamato Kogyo (TSE:5444)4.06%★★★★★★
Padma Oil (DSE:PADMAOIL)7.42%★★★★★★
GakkyushaLtd (TSE:9769)4.43%★★★★★★
China South Publishing & Media Group (SHSE:601098)4.01%★★★★★★
Guangxi LiuYao Group (SHSE:603368)3.41%★★★★★★
Nihon Parkerizing (TSE:4095)3.95%★★★★★★
E J Holdings (TSE:2153)3.97%★★★★★★
DoshishaLtd (TSE:7483)3.78%★★★★★★

Click here to see the full list of 1948 stocks from our Top Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

UniCredit (BIT:UCG)

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

Overview: UniCredit S.p.A. is a commercial banking institution operating in Italy, Germany, Central Europe, and Eastern Europe with a market cap of €69.59 billion.

Operations: UniCredit S.p.A.'s revenue segments are comprised of €10.88 billion from Italy, €5.27 billion from Germany, €4.29 billion from Central Europe, €2.87 billion from Eastern Europe, and €1.36 billion from Russia.

Dividend Yield: 4.1%

UniCredit's dividend payments are well covered by earnings, with a current payout ratio of 46.3%, expected to rise to 56.5% in three years. However, its dividend yield of 4.13% is below the top tier in Italy, and past payments have been volatile and unreliable. Despite trading at a discount to estimated fair value and peers, challenges include high bad loans (2.4%) and an unstable dividend track record amidst recent fixed-income offerings totaling over €3 billion since November 2024.

BIT:UCG Dividend History as at Jan 2025
BIT:UCG Dividend History as at Jan 2025

CaixaBank (BME:CABK)

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

Overview: CaixaBank, S.A. is a financial institution offering a range of banking products and services in Spain and internationally, with a market cap of €42.71 billion.

Operations: CaixaBank's revenue is derived from several segments, including Banking (Incl. Non-Core Real Estate) at €10.67 billion, Insurance at €1.83 billion, Portuguese Investment Bank (BPI) at €1.21 billion, and the Corporate Center contributing €153 million.

Dividend Yield: 5%

CaixaBank's dividend payments are covered by earnings with a payout ratio of 76.2%, though its yield of 5.03% is slightly below the top Spanish dividend payers. Despite past volatility and unreliability in dividends, recent earnings growth of 26.4% offers some optimism, although earnings are forecast to decline by 1% annually over the next three years. Recent fixed-income offerings totaling €99.6 million reflect ongoing financial activities amidst government stake management discussions worth €6.6 billion ($6.9 billion).

BME:CABK Dividend History as at Jan 2025
BME:CABK Dividend History as at Jan 2025

Ryoden (TSE:8084)

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

Overview: Ryoden Corporation is engaged in the sale of factory automation systems, cooling and heating systems, information and communication technologies, facilities systems, and electronics both in Japan and internationally, with a market cap of ¥53.99 billion.

Operations: Ryoden Corporation's revenue is primarily derived from its Electronics segment at ¥149.31 billion, followed by Factory Automation Systems at ¥49.93 billion, and X - Tech contributing ¥7.51 billion.

Dividend Yield: 4.3%

Ryoden's dividend payments are well-covered by both earnings and cash flows, with a payout ratio of 51.8% and a cash payout ratio of 25.1%. However, the company has an unstable dividend track record over the past decade, marked by volatility. Despite this, dividends have grown during this period. Ryoden's recent guidance revision indicates lower expected profits due to delayed recovery in FA systems and weakness in the Chinese economy, potentially impacting future payouts.

TSE:8084 Dividend History as at Jan 2025
TSE:8084 Dividend History as at Jan 2025

Where To Now?

Seeking Other Investments?

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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About BME:CABK

CaixaBank

Provides various banking products and financial services in Spain and internationally.

Solid track record with adequate balance sheet and pays a dividend.

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