Stock Analysis

Top Dividend Stocks To Watch In January 2025

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As global markets react positively to recent U.S. policy developments and AI investment announcements, major indices like the S&P 500 and Dow Jones Industrial Average have reached new highs. In this environment of optimism and growth, dividend stocks continue to attract attention for their potential to provide steady income streams alongside capital appreciation.

Top 10 Dividend Stocks

NameDividend YieldDividend Rating
Guaranty Trust Holding (NGSE:GTCO)5.93%★★★★★★
Wuliangye YibinLtd (SZSE:000858)3.67%★★★★★★
CAC Holdings (TSE:4725)4.51%★★★★★★
Padma Oil (DSE:PADMAOIL)7.42%★★★★★★
China South Publishing & Media Group (SHSE:601098)4.01%★★★★★★
Guangxi LiuYao Group (SHSE:603368)3.41%★★★★★★
FALCO HOLDINGS (TSE:4671)6.52%★★★★★★
Citizens & Northern (NasdaqCM:CZNC)5.23%★★★★★★
HUAYU Automotive Systems (SHSE:600741)4.46%★★★★★★
E J Holdings (TSE:2153)3.97%★★★★★★

Click here to see the full list of 1949 stocks from our Top Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Aksa Akrilik Kimya Sanayii (IBSE:AKSA)

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

Overview: Aksa Akrilik Kimya Sanayii A.S. operates in the manufacturing and sale of textiles, chemicals, and other industrial products both in Turkey and internationally, with a market cap of TRY42.74 billion.

Operations: Aksa Akrilik Kimya Sanayii's revenue is primarily derived from its Fibres segment, which generated TRY18.91 billion, followed by the Energy segment with TRY1.17 billion.

Dividend Yield: 3.7%

Aksa Akrilik Kimya Sanayii offers a dividend yield of 3.74%, ranking in the top 25% of Turkish dividend payers, yet it's not supported by free cash flow and has shown volatility over the past decade. Despite a reasonable payout ratio of 58.3%, dividends are unreliable due to inconsistent earnings coverage. Recent earnings show improvement, with TRY 286.2 million net income in Q3 compared to a loss last year, indicating potential for future stability if trends continue.

IBSE:AKSA Dividend History as at Jan 2025

Seika (TSE:8061)

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

Overview: Seika Corporation is engaged in the import, sale, and export of plants, machinery, and environmental protection and electronic information system equipment across Asia, Europe, the United States, and globally with a market cap of ¥53.61 billion.

Operations: Seika Corporation's revenue is primarily derived from its Product Business segment at ¥33.53 billion, followed by the Electric Power Business at ¥33.32 billion, and the Industrial Machinery Business at ¥25.98 billion.

Dividend Yield: 4%

Seika Corporation's recent dividend increase to JPY 90 per share, with a forecasted year-end dividend of JPY 120, reflects its focus on rewarding shareholders. Although dividends have been volatile over the past decade, they are well-covered by earnings and cash flows, with payout ratios at 26.9% and 41.1%, respectively. Despite trading below estimated fair value, Seika's strong earnings growth of 43.2% last year suggests potential for improved dividend stability moving forward.

TSE:8061 Dividend History as at Jan 2025

WashTec (XTRA:WSU)

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

Overview: WashTec AG offers car wash solutions across Germany, Europe, North America, and the Asia Pacific with a market cap of €531.28 million.

Operations: WashTec AG's revenue segments include North America, contributing €87.58 million, with a segment adjustment of €390.43 million.

Dividend Yield: 5.5%

WashTec's dividend yield of 5.5% ranks it among the top 25% in Germany, yet its sustainability is questionable due to a high payout ratio of 103.4%, indicating dividends are not well-covered by earnings. Although cash flow coverage seems reasonable with a cash payout ratio of 62.2%, dividend payments have been volatile over the past decade, reflecting some unreliability. Recent earnings showed slight growth, but sales declined year-over-year, highlighting financial challenges ahead.

XTRA:WSU Dividend History as at Jan 2025

Turning Ideas Into Actions

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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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