Top 3 Dividend Stocks To Consider For Your Portfolio

In a week marked by volatility, global markets have been influenced by shifting interest rate policies and competitive pressures in the AI sector, leading to mixed performances across major indices. As investors navigate these turbulent waters, dividend stocks can offer a measure of stability and income potential, making them an attractive consideration for portfolios seeking resilience amidst economic fluctuations.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Totech (TSE:9960)	3.80%	★★★★★★
Tsubakimoto Chain (TSE:6371)	4.32%	★★★★★★
Guaranty Trust Holding (NGSE:GTCO)	6.06%	★★★★★★
Peoples Bancorp (NasdaqGS:PEBO)	4.90%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.46%	★★★★★★
CAC Holdings (TSE:4725)	4.57%	★★★★★★
Daito Trust ConstructionLtd (TSE:1878)	3.95%	★★★★★★
Nihon Parkerizing (TSE:4095)	4.01%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.67%	★★★★★★
Yamato Kogyo (TSE:5444)	3.97%	★★★★★★

Click here to see the full list of 1974 stocks from our Top Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

A2A (BIT:A2A)

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

Overview: A2A S.p.A. is involved in the production, sale, and distribution of gas and electricity, as well as district heating services in Italy and internationally, with a market cap of €7.16 billion.

Operations: A2A S.p.A.'s revenue segments include Waste (€1.53 billion), Market (€6.56 billion), and Smart Infrastructures (€1.49 billion).

Dividend Yield: 4.2%

A2A's dividend yield of 4.19% is lower than the top quartile of Italian dividend payers, and while its payout ratio of 34.6% suggests dividends are well covered by earnings, they are not supported by free cash flow due to a high cash payout ratio of 150.8%. Recent earnings growth and stable dividends over the past decade indicate reliability, but future earnings are expected to decline. The company recently raised €495.4 million through green bonds, indicating ongoing capital management efforts amidst high debt levels.

• Click to explore a detailed breakdown of our findings in A2A's dividend report.
• The analysis detailed in our A2A valuation report hints at an deflated share price compared to its estimated value.

Médica Sur. de (BMV:MEDICA B)

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

Overview: Médica Sur, S.A.B. de C.V. operates as a healthcare hospital in Mexico with a market cap of MX$3.67 billion.

Operations: Médica Sur, S.A.B. de C.V. generates its revenue from various healthcare services provided as a hospital in Mexico.

Dividend Yield: 4.4%

Médica Sur's dividend payments have been volatile over the past decade, despite an overall increase. Currently trading at a significant discount to its estimated fair value, the company maintains a low payout ratio of 42.8%, ensuring dividends are covered by earnings and cash flows. However, its 4.41% yield is below Mexico's top quartile for dividend payers, and profit margins have declined recently from 13.2% to 8.6%.

• Take a closer look at Médica Sur. de's potential here in our dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Médica Sur. de shares in the market.

Fleury Michon (ENXTPA:ALFLE)

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

Overview: Fleury Michon SA produces and sells food products in France and internationally, with a market cap of €101.37 million.

Operations: Fleury Michon SA's revenue is primarily generated through its Division GMS France at €679.59 million and its International Division at €91.20 million.

Dividend Yield: 5.3%

Fleury Michon's dividend track record is unstable, with payments being volatile over the past decade. Despite this, its dividends are well-covered by earnings and cash flows, with payout ratios of 34.1% and 12.6%, respectively. The stock trades significantly below its estimated fair value but offers a yield of 5.35%, which is below the top quartile in France. Recent share repurchase plans could potentially stabilize the company's share price in the near term.

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

Next Steps

• Embark on your investment journey to our 1974 Top Dividend Stocks selection here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com