Top Dividend Stocks To Consider In January 2025

As global markets react to political shifts and economic indicators, U.S. stocks are reaching record highs amid optimism over potential trade policy changes and increased investment in artificial intelligence infrastructure. In this dynamic environment, dividend stocks present a compelling opportunity for investors seeking stable income streams; these stocks typically offer regular payouts and can be particularly attractive during periods of market volatility or uncertainty.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.24%	★★★★★★
Peoples Bancorp (NasdaqGS:PEBO)	4.84%	★★★★★★
CAC Holdings (TSE:4725)	4.57%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.43%	★★★★★★
GakkyushaLtd (TSE:9769)	4.36%	★★★★★★
Citizens & Northern (NasdaqCM:CZNC)	5.11%	★★★★★★
Nihon Parkerizing (TSE:4095)	3.94%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.51%	★★★★★★
E J Holdings (TSE:2153)	4.00%	★★★★★★
DoshishaLtd (TSE:7483)	3.79%	★★★★★★

Click here to see the full list of 1959 stocks from our Top Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Systena (TSE:2317)

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

Overview: Systena Corporation operates in Japan, focusing on solution and framework design, IT services, business solutions, and cloud businesses, with a market cap of ¥127.25 billion.

Operations: Systena Corporation's revenue segments include ¥19.77 billion from the Solution Design Business, ¥7.46 billion from the Framework Design Business, and ¥28.61 billion from the Business Solution Business.

Dividend Yield: 3.4%

Systena Corporation has increased its dividend to JPY 6 per share, up from JPY 5 the previous year, with payments commencing December 3, 2024. The company's dividends are well-covered by earnings and cash flows, with a payout ratio of approximately 52%. While its dividend yield of 3.37% is lower than the top quartile in Japan, it remains stable and reliable over the past decade. Systena trades at a value below its estimated fair value.

• Get an in-depth perspective on Systena's performance by reading our dividend report here.
• Our expertly prepared valuation report Systena implies its share price may be lower than expected.

Hitachi Construction Machinery (TSE:6305)

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

Overview: Hitachi Construction Machinery Co., Ltd. and its subsidiaries manufacture and sell construction machinery globally, with a market cap of ¥825.50 billion.

Operations: Hitachi Construction Machinery generates revenue through its global manufacturing and sales of construction machinery.

Dividend Yield: 3.3%

Hitachi Construction Machinery's dividends are well-covered by earnings and cash flows, with low payout ratios of 14.6% and 35.4%, respectively. Despite trading at a good value, the company has a high debt level and its dividend yield of 3.35% is below the top quartile in Japan. Over the past decade, dividends have been volatile despite some growth, making them less reliable for consistent income seekers. Earnings are expected to grow annually by 6.06%.

• Dive into the specifics of Hitachi Construction Machinery here with our thorough dividend report.
• Our valuation report here indicates Hitachi Construction Machinery may be undervalued.

France Bed HoldingsLtd (TSE:7840)

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

Overview: France Bed Holdings Co., Ltd. operates in Japan through its subsidiaries, focusing on medical services and home furnishing and health businesses, with a market cap of ¥44.23 billion.

Operations: France Bed Holdings Co., Ltd. generates revenue from its Medical Services segment, amounting to ¥39.85 billion, and its Interior Health segment, contributing ¥19.90 billion.

Dividend Yield: 3%

France Bed Holdings offers a stable dividend, recently affirming a payment of ¥17 per share. Its dividends are well-covered by earnings and cash flows, with payout ratios of 42.7% and 41.9%, respectively. Although the yield of 3.05% is below Japan's top quartile, dividends have been stable and growing over the past decade. The stock trades at a discount to its estimated fair value, providing potential appeal for value-focused investors seeking reliable income streams.

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

Taking Advantage

• Reveal the 1959 hidden gems among our Top Dividend Stocks screener with a single click here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Want To Explore Some Alternatives?

• 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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