Stock Analysis

Top Dividend Stocks To Consider In January 2025

SZSE:002831
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As global markets navigate a choppy start to 2025, with U.S. equities experiencing declines amid inflation concerns and political uncertainties, investors are increasingly focusing on resilient sectors such as dividend stocks. In this environment of economic unpredictability and fluctuating interest rates, dividend-paying stocks can offer a stable income stream, making them an attractive option for those seeking to balance risk and return in their portfolios.

Top 10 Dividend Stocks

NameDividend YieldDividend Rating
Wuliangye YibinLtd (SZSE:000858)3.52%★★★★★★
MISC Berhad (KLSE:MISC)5.10%★★★★★★
Yamato Kogyo (TSE:5444)4.10%★★★★★★
Padma Oil (DSE:PADMAOIL)7.56%★★★★★★
GakkyushaLtd (TSE:9769)4.40%★★★★★★
China South Publishing & Media Group (SHSE:601098)4.15%★★★★★★
Nihon Parkerizing (TSE:4095)4.03%★★★★★★
FALCO HOLDINGS (TSE:4671)6.56%★★★★★★
E J Holdings (TSE:2153)4.08%★★★★★★
DoshishaLtd (TSE:7483)3.88%★★★★★★

Click here to see the full list of 2004 stocks from our Top Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Wasion Holdings (SEHK:3393)

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

Overview: Wasion Holdings Limited is an investment holding company that focuses on the research, development, production, and sale of energy metering and energy efficiency management solutions for energy supply industries across various regions including the People's Republic of China, Africa, the United States, Europe, and Asia; it has a market cap of approximately HK$6.92 billion.

Operations: Wasion Holdings Limited generates revenue from three main segments: Advanced Distribution Operations (CN¥2.51 billion), Power Advanced Metering Infrastructure (CN¥2.99 billion), and Communication and Fluid Advanced Metering Infrastructure (CN¥2.42 billion).

Dividend Yield: 3.9%

Wasion Holdings, trading at 50.3% below its estimated fair value, offers a dividend yield of 3.94%, which is low compared to top-tier payers in Hong Kong. Despite earnings growth of 61.9% last year and dividends being well-covered by earnings (40% payout ratio) and cash flows (39%), its dividend history has been volatile over the past decade with significant annual drops exceeding 20%. Nonetheless, dividends have increased over this period.

SEHK:3393 Dividend History as at Jan 2025
SEHK:3393 Dividend History as at Jan 2025

ShenZhen YUTO Packaging Technology (SZSE:002831)

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

Overview: ShenZhen YUTO Packaging Technology Co., Ltd. operates in the packaging industry, providing comprehensive packaging solutions, with a market cap of CN¥24.60 billion.

Operations: ShenZhen YUTO Packaging Technology Co., Ltd. generates revenue primarily from its Paper Packaging segment, totaling CN¥16.27 billion.

Dividend Yield: 3.5%

ShenZhen YUTO Packaging Technology's dividend yield of 3.53% ranks in the top 25% of Chinese dividend payers, supported by a reasonable payout ratio (55.2%) and cash flow coverage (58.6%). However, its eight-year dividend history is marked by volatility, with payments not consistently growing. The company shows good relative value with a price-to-earnings ratio of 15.7x compared to the market's 33.4x and has completed a share buyback worth CNY 101.89 million recently, potentially enhancing shareholder value.

SZSE:002831 Dividend History as at Jan 2025
SZSE:002831 Dividend History as at Jan 2025

Seibu Electric & Machinery (TSE:6144)

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

Overview: Seibu Electric & Machinery Co., Ltd. is a Japanese company that manufactures and sells mechatronics, with a market cap of ¥30.21 billion.

Operations: Seibu Electric & Machinery Co., Ltd.'s revenue is primarily derived from its Precision Machinery Business at ¥13.76 billion, Conveyance Machinery Business at ¥10.91 billion, and Industrial Machinery Business at ¥6.64 billion.

Dividend Yield: 4.2%

Seibu Electric & Machinery offers a dividend yield of 4.2%, ranking in the top 25% of Japanese dividend payers. Despite a stable and reliable 10-year dividend history, its dividends are not covered by free cash flows, raising sustainability concerns. The payout ratio is reasonable at 56%, indicating coverage by earnings but highlighting potential risks without adequate cash flow support. Non-cash earnings contribute significantly to its reported profits, which may affect future payouts.

TSE:6144 Dividend History as at Jan 2025
TSE:6144 Dividend History as at Jan 2025

Taking Advantage

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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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