3 Solid Dividend Stocks Offering Up To 4.2% Yield

As global markets navigate a landscape marked by fluctuating consumer confidence and mixed economic indicators, investors are increasingly seeking stability amid uncertainty. In such an environment, dividend stocks can offer a reliable income stream, making them an attractive option for those looking to balance growth with steady returns.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Guaranty Trust Holding (NGSE:GTCO)	6.49%	★★★★★★
Tsubakimoto Chain (TSE:6371)	4.09%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.33%	★★★★★★
CAC Holdings (TSE:4725)	4.84%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.36%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.42%	★★★★★★
Nihon Parkerizing (TSE:4095)	3.83%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.26%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.38%	★★★★★★
E J Holdings (TSE:2153)	3.82%	★★★★★★

Click here to see the full list of 1940 stocks from our Top Dividend Stocks screener.

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

Avanza Bank Holding (OM:AZA)

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

Overview: Avanza Bank Holding AB (publ) operates in Sweden, providing savings, pension, and mortgage products through its subsidiaries, with a market cap of SEK42.91 billion.

Operations: Avanza Bank Holding AB (publ) generates revenue from its commercial operations, amounting to SEK4.09 billion.

Dividend Yield: 4.2%

Avanza Bank Holding's dividend payments are well covered by cash flows, with a cash payout ratio of 33%, and earnings, despite an 84.9% payout ratio. Earnings have shown consistent growth, including a recent increase in net income to SEK 1.63 billion for the first nine months of 2024. However, its dividend yield is below top-tier payers in Sweden and has been historically volatile and unreliable over the past decade.

• Delve into the full analysis dividend report here for a deeper understanding of Avanza Bank Holding.
• Our expertly prepared valuation report Avanza Bank Holding implies its share price may be too high.

Itochu EnexLtd (TSE:8133)

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

Overview: Itochu Enex Co., Ltd. operates in the sale of petroleum products and liquefied petroleum gas (LPG) both domestically in Japan and internationally, with a market cap of approximately ¥184.84 billion.

Operations: Itochu Enex Co., Ltd. generates revenue through its domestic and international sales of petroleum products and liquefied petroleum gas (LPG).

Dividend Yield: 3.4%

Itochu Enex Ltd. offers a reliable dividend profile, trading at 68.1% below its estimated fair value. The company maintains a stable and growing dividend, recently increasing from ¥26.00 to ¥28.00 per share for the second quarter of 2024, payable December 6th. Its dividends are well covered by earnings and cash flows with payout ratios of 47.6% and 25.8%, respectively, though its yield of 3.42% is below Japan's top-tier payers' average of 3.75%.

• Take a closer look at Itochu EnexLtd's potential here in our dividend report.
• The analysis detailed in our Itochu EnexLtd valuation report hints at an deflated share price compared to its estimated value.

Nac (TSE:9788)

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

Overview: Nac Co., Ltd. operates in Japan, focusing on the renting and sale of dust control and cleaning products and equipment, with a market cap of ¥25.52 billion.

Operations: Nac Co., Ltd.'s revenue segments include Housing at ¥11.30 billion, Rental Business at ¥17.62 billion, Kurikura Business at ¥15.28 billion, Beauty and Health Business at ¥6.98 billion, and Architectural Consulting Business at ¥5.37 billion.

Dividend Yield: 3.7%

Nac's dividend payments are covered by earnings and cash flows, with payout ratios of 71.6% and 50.1%, respectively, indicating sustainability despite a volatile history over the past decade. The dividend yield of 3.72% is slightly below Japan's top-tier payers' average of 3.75%. While dividends have grown over the last ten years, their stability remains questionable due to past volatility and a declining net profit margin from last year’s 3.6% to this year’s 2.2%.

• Click to explore a detailed breakdown of our findings in Nac's dividend report.
• According our valuation report, there's an indication that Nac's share price might be on the expensive side.

Seize The Opportunity

• Explore the 1940 names from our Top Dividend Stocks screener here.
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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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