Stock Analysis

Premier Dividend Stocks To Consider In January 2025

TSE:6584
Source: Shutterstock

As global markets experience a rebound, driven by easing inflation and robust bank earnings in the U.S., investors are increasingly optimistic about potential rate cuts later in the year. Amid this backdrop, dividend stocks present an appealing option for those seeking steady income and stability, especially given their potential to outperform during periods of market volatility.

Top 10 Dividend Stocks

NameDividend YieldDividend Rating
Tsubakimoto Chain (TSE:6371)4.30%★★★★★★
Wuliangye YibinLtd (SZSE:000858)3.63%★★★★★★
CAC Holdings (TSE:4725)4.69%★★★★★★
Southside Bancshares (NYSE:SBSI)4.54%★★★★★★
Yamato Kogyo (TSE:5444)4.08%★★★★★★
GakkyushaLtd (TSE:9769)4.44%★★★★★★
China South Publishing & Media Group (SHSE:601098)4.12%★★★★★★
Guangxi LiuYao Group (SHSE:603368)3.49%★★★★★★
Nihon Parkerizing (TSE:4095)4.01%★★★★★★
DoshishaLtd (TSE:7483)3.89%★★★★★★

Click here to see the full list of 1983 stocks from our Top Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Sanoh Industrial (TSE:6584)

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

Overview: Sanoh Industrial Co., Ltd. manufactures and sells automotive parts worldwide, with a market capitalization of ¥26.38 billion.

Operations: Sanoh Industrial Co., Ltd.'s revenue is derived from several regions, including ¥29.72 billion from Asia, ¥17.16 billion from China, ¥49.66 billion from Japan, ¥23.32 billion from Europe, and ¥66.40 billion from North and South America.

Dividend Yield: 3.8%

Sanoh Industrial's dividend strategy shows mixed attributes. The company's dividends are well-covered by earnings and cash flows, with payout ratios at 24.8% and 18%, respectively. Despite a history of volatility, dividends have grown over the past decade. However, its current yield is slightly below top-tier market payers in Japan. Sanoh trades significantly below estimated fair value and benefits from strong earnings growth, although its dividend track record remains unstable.

TSE:6584 Dividend History as at Jan 2025
TSE:6584 Dividend History as at Jan 2025

Mirai IndustryLtd (TSE:7931)

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

Overview: Mirai Industry Co., Ltd. manufactures and sells electrical and pipe materials, as well as wiring devices in Japan, with a market cap of ¥62.10 billion.

Operations: Mirai Industry Co., Ltd.'s revenue primarily comes from its Electrical Materials and Pipe Materials segment, which generated ¥34.80 billion, followed by Wiring Accessories at ¥7.08 billion.

Dividend Yield: 3.4%

Mirai Industry's dividends are well-supported by earnings and cash flows, with payout ratios of 46.3% and 47.4%, respectively. Despite past volatility, dividends have grown over the decade but remain unreliable. Recent guidance indicates a decrease in year-end dividends to ¥80 per share from ¥100 previously, while mid-year dividends held steady at ¥50 per share. The dividend yield is below top-tier market levels in Japan, and the stock trades significantly below estimated fair value.

TSE:7931 Dividend History as at Jan 2025
TSE:7931 Dividend History as at Jan 2025

PharmaSGP Holding (XTRA:PSG)

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

Overview: PharmaSGP Holding SE manufactures and sells over-the-counter drugs and other healthcare products in Germany, with a market cap of €311.75 million.

Operations: PharmaSGP Holding SE generates its revenue from the Pharmaceuticals segment, which amounts to €114 million.

Dividend Yield: 5.2%

PharmaSGP Holding's dividend yield is among the top 25% in Germany, supported by a cash payout ratio of 57%, indicating coverage by cash flows. However, the dividend has been paid for only three years, limiting its historical reliability. The company trades significantly below estimated fair value but carries high debt levels. Recent earnings show growth, with sales reaching €88.58 million and net income at €14.05 million for the nine months ending September 2024.

XTRA:PSG Dividend History as at Jan 2025
XTRA:PSG Dividend History as at Jan 2025

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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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