Top Three Dividend Stocks To Consider In Your Portfolio

As global markets adjust to easing inflation and robust earnings in the banking sector, major U.S. stock indexes have rebounded, with value stocks outperforming growth shares significantly. In this context of market optimism, dividend stocks present an appealing option for investors seeking steady income streams and potential capital appreciation, especially when core inflation shows signs of moderation.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Guaranty Trust Holding (NGSE:GTCO)	6.17%	★★★★★★
Peoples Bancorp (NasdaqGS:PEBO)	4.97%	★★★★★★
Yamato Kogyo (TSE:5444)	4.06%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.49%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.16%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.62%	★★★★★★
Nihon Parkerizing (TSE:4095)	4.01%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.67%	★★★★★★
Premier Financial (NasdaqGS:PFC)	4.91%	★★★★★★
Citizens & Northern (NasdaqCM:CZNC)	5.91%	★★★★★★

Click here to see the full list of 1976 stocks from our Top Dividend Stocks screener.

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

Golden Long Teng Development (TPEX:3188)

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

Overview: Golden Long Teng Development Co., Ltd. focuses on the development, sale, and lease of residential and commercial buildings, with a market cap of NT$5.03 billion.

Operations: Golden Long Teng Development Co., Ltd.'s revenue primarily stems from its Construction and Development segment, which generated NT$3.05 billion.

Dividend Yield: 5.9%

Golden Long Teng Development's dividend yield of 5.93% ranks in the top 25% of Taiwan's market, supported by a payout ratio of 41.2% and cash flow coverage at 69%. However, dividends have been volatile over its six-year history. Recent earnings growth is notable, with net income for Q3 2024 reaching TWD 137.79 million from TWD 15.22 million a year prior, but debt coverage remains an area to watch closely given its financial position.

• Take a closer look at Golden Long Teng Development's potential here in our dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Golden Long Teng Development shares in the market.

DMG Mori (TSE:6141)

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

Overview: DMG Mori Co., Ltd. is a global manufacturer and seller of machine tools, with a market cap of ¥342.88 billion.

Operations: DMG Mori Co., Ltd.'s revenue is primarily derived from Machine Tools, contributing ¥650.31 billion, and Industrial Service, adding ¥236.16 billion.

Dividend Yield: 4.1%

DMG Mori's dividend yield of 4.12% is among the top 25% in Japan, yet its dividends have been unreliable and volatile over the past decade. Despite trading significantly below fair value, recent guidance revisions indicate weaker earnings potential, with profit expectations dropping to JPY 10 billion. The payout ratio of 48.3% suggests dividends are covered by earnings but not by free cash flows, as evidenced by a high cash payout ratio of 252.6%.

• Dive into the specifics of DMG Mori here with our thorough dividend report.
• The valuation report we've compiled suggests that DMG Mori's current price could be quite moderate.

Sumida (TSE:6817)

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

Overview: Sumida Corporation designs, manufactures, and sells electronic components and modules for consumer electronics, automotive, and industrial applications across Japan, the rest of Asia, Europe, and North and South America with a market cap of ¥30.37 billion.

Operations: Sumida Corporation's revenue is derived from its EU business, contributing ¥59.56 billion, and its Asia Pacific Business, contributing ¥93.84 billion.

Dividend Yield: 5.8%

Sumida Corporation's dividend yield of 5.77% ranks in the top 25% in Japan, but its dividends have been volatile and unreliable over the past decade. While recent affirmations maintain a JPY 27 per share dividend, earnings guidance has been lowered due to market challenges, impacting profit margins (currently at 1.3%). The high payout ratio of 91.1% indicates dividends are not well covered by earnings, raising sustainability concerns despite cash flow coverage.

• Delve into the full analysis dividend report here for a deeper understanding of Sumida.
• Upon reviewing our latest valuation report, Sumida's share price might be too optimistic.

Key Takeaways

• Embark on your investment journey to our 1976 Top Dividend Stocks selection here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Curious About Other Options?

• 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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