Top 3 Dividend Stocks To Enhance Your Portfolio

In a week marked by cautious Federal Reserve commentary and looming political uncertainties, global markets have experienced significant fluctuations, with U.S. stocks facing broad-based declines despite a late-week rally. As investors navigate these turbulent conditions, dividend stocks can offer stability and income potential, making them an attractive option for enhancing portfolios in uncertain economic times.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.18%	★★★★★★
CAC Holdings (TSE:4725)	4.77%	★★★★★★
Yamato Kogyo (TSE:5444)	4.10%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.26%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.56%	★★★★★★
GakkyushaLtd (TSE:9769)	4.39%	★★★★★★
Nihon Parkerizing (TSE:4095)	3.91%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	3.77%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.64%	★★★★★★
E J Holdings (TSE:2153)	3.84%	★★★★★★

Click here to see the full list of 1950 stocks from our Top Dividend Stocks screener.

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

Lanner Electronics (TPEX:6245)

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

Overview: Lanner Electronics Inc. manufactures and sells Internet and communication equipment across the United States, Europe, China, Israel, Canada, and internationally with a market cap of NT$13.12 billion.

Operations: Lanner Electronics Inc. generates revenue of NT$7.51 billion from its manufacturing and sales of network communication equipment segment.

Dividend Yield: 4.6%

Lanner Electronics offers a dividend yield of 4.59%, placing it in the top 25% of dividend payers in Taiwan, but its payments have been volatile over the past decade. Although dividends are covered by earnings with a payout ratio of 74.3%, they are not well-supported by free cash flows due to a high cash payout ratio of 98.5%. Recent earnings show stable net income despite increased sales, which may impact future dividend reliability.

• Get an in-depth perspective on Lanner Electronics' performance by reading our dividend report here.
• Our valuation report here indicates Lanner Electronics may be overvalued.

Sanyo Trading (TSE:3176)

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

Overview: Sanyo Trading Co., Ltd. operates in the rubber, chemical, green technology, industrial products, and life science sectors both in Japan and internationally with a market cap of ¥45.27 billion.

Operations: Sanyo Trading Co., Ltd.'s revenue is primarily derived from Chemical Products at ¥46.67 billion, Overseas Subsidiary operations contributing ¥37.30 billion, and Mechanical Materials generating ¥54.19 billion.

Dividend Yield: 3.6%

Sanyo Trading's dividends have been stable and growing over the past decade, supported by a low payout ratio of 30.4% and a cash payout ratio of 34.6%, indicating strong coverage by earnings and cash flows. Although its dividend yield of 3.59% is slightly below the top tier in Japan, it remains reliable. The stock trades at good value, significantly below its estimated fair value, enhancing its appeal for dividend investors seeking stability.

• Take a closer look at Sanyo Trading's potential here in our dividend report.
• The valuation report we've compiled suggests that Sanyo Trading's current price could be quite moderate.

Trade-Van Information Services (TWSE:6183)

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

Overview: Trade-Van Information Services Co. offers custom clearance automation and value-added services in Taiwan, with a market cap of NT$12.56 billion.

Operations: Trade-Van Information Services Co. generates revenue from Electronic Data Exchange Services and its Peripheral Services, amounting to NT$2.49 billion.

Dividend Yield: 3.2%

Trade-Van Information Services offers a reliable dividend that has grown steadily over the past decade, supported by stable earnings growth and coverage with an 84.3% payout ratio and an 88.3% cash payout ratio. Despite its yield of 3.15% being lower than Taiwan's top tier, recent earnings improvements, including a rise in net income to TWD 150.5 million for Q3, underscore its capacity to maintain dividends amidst solid financial performance.

• Click to explore a detailed breakdown of our findings in Trade-Van Information Services' dividend report.
• The valuation report we've compiled suggests that Trade-Van Information Services' current price could be inflated.

Key Takeaways

• Investigate our full lineup of 1950 Top Dividend Stocks right 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.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Looking For Alternative Opportunities?

• 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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