Top Three Dividend Stocks To Consider

In the wake of recent market rallies driven by expectations of policy changes following a significant political shift in the U.S., investors are keenly observing how these developments might influence growth and inflation. Amidst this backdrop, dividend stocks stand out as a compelling option for those seeking steady income streams, especially when economic policies hint at potential regulatory easing and tax reductions.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Peoples Bancorp (NasdaqGS:PEBO)	4.53%	★★★★★★
Guaranty Trust Holding (NGSE:GTCO)	6.83%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.04%	★★★★★★
Financial Institutions (NasdaqGS:FISI)	4.42%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.40%	★★★★★★
CAC Holdings (TSE:4725)	4.52%	★★★★★★
James Latham (AIM:LTHM)	6.15%	★★★★★★
Premier Financial (NasdaqGS:PFC)	4.38%	★★★★★★
Citizens & Northern (NasdaqCM:CZNC)	5.44%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.91%	★★★★★★

Click here to see the full list of 1939 stocks from our Top Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Zignago Vetro (BIT:ZV)

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

Overview: Zignago Vetro S.p.A. and its subsidiaries produce, market, and sell hollow glass containers in Italy, Europe, and internationally with a market cap of €859.13 million.

Operations: Zignago Vetro S.p.A.'s revenue segments include €19.40 million from Vetro Revet Srl, €344.45 million from Zignago Vetro SpA, €69.17 million from Zignago Vetro France, €3.89 million from Zignago Glass USA Inc., €4.25 million from Italian Glass Moulds Srl, and €90.71 million from Zignago Vetro Polska S.A., with a consolidation adjustment of -€55.80 million.

Dividend Yield: 7.7%

Zignago Vetro offers a compelling dividend profile, with a high yield of 7.72%, placing it in the top quartile of Italian dividend payers. Despite lower profit margins this year and a high debt level, its dividends are reliably covered by both earnings and cash flows, each at around 89%. The stock trades significantly below its estimated fair value, suggesting good relative value compared to peers. Dividends have been stable and growing over the past decade.

• Delve into the full analysis dividend report here for a deeper understanding of Zignago Vetro.
• In light of our recent valuation report, it seems possible that Zignago Vetro is trading behind its estimated value.

Bawan (SASE:1302)

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

Overview: Bawan Company, with a market cap of SAR2.74 billion, manufactures and sells metal and steel works in the Kingdom of Saudi Arabia.

Operations: Bawan Company's revenue segments consist of Plastic at SAR365.98 million, Electrical at SAR571.18 million, and Metal and Wood at SAR2.12 billion.

Dividend Yield: 3.2%

Bawan's dividends are covered by both earnings and cash flows with payout ratios of 77.6% and 87.5%, respectively, though the dividend yield of 3.18% is below the top quartile in Saudi Arabia. Despite a history of volatility in dividend payments, there has been growth over the past decade. Recent earnings show a decline, with Q3 sales at SAR 682.6 million and net income at SAR 23.45 million, reflecting challenges that could impact future payouts.

• Navigate through the intricacies of Bawan with our comprehensive dividend report here.
• Insights from our recent valuation report point to the potential overvaluation of Bawan shares in the market.

Okamoto Machine Tool Works (TSE:6125)

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

Overview: Okamoto Machine Tool Works, Ltd. manufactures and sells grinding machines, semiconductor, gear, and casting equipment both in Japan and internationally, with a market cap of ¥26.83 billion.

Operations: Okamoto Machine Tool Works, Ltd. generates revenue through its manufacturing and sales of grinding machines, semiconductor equipment, gear machinery, and casting equipment across domestic and international markets.

Dividend Yield: 3.9%

Okamoto Machine Tool Works' dividend yield of 3.91% ranks in the top 25% of Japan's market, but the payments are not covered by free cash flows and have been volatile over the past decade. Despite a low payout ratio of 30%, indicating coverage by earnings, dividends remain unreliable due to volatility and lack of growth stability. A recent share repurchase program aims to enhance shareholder returns, potentially impacting future dividend sustainability positively.

• Get an in-depth perspective on Okamoto Machine Tool Works' performance by reading our dividend report here.
• The analysis detailed in our Okamoto Machine Tool Works valuation report hints at an inflated share price compared to its estimated value.

Key Takeaways

• Get an in-depth perspective on all 1939 Top Dividend Stocks by using our screener here.
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Interested In Other Possibilities?

• 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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