Asian Dividend Stocks: 3 Top Picks

As global markets navigate a landscape marked by trade negotiations and economic uncertainties, Asian equities have shown resilience, with key indices in China and Japan experiencing gains amid positive trade developments. In such an environment, dividend stocks can offer investors a measure of stability and income potential, making them particularly attractive for those seeking to balance risk with steady returns.

Top 10 Dividend Stocks In Asia

Name	Dividend Yield	Dividend Rating
Daito Trust ConstructionLtd (TSE:1878)	4.23%	★★★★★★
CAC Holdings (TSE:4725)	4.65%	★★★★★★
Tsubakimoto Chain (TSE:6371)	4.31%	★★★★★★
Chudenko (TSE:1941)	3.92%	★★★★★★
GakkyushaLtd (TSE:9769)	4.09%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.48%	★★★★★★
Yamato Kogyo (TSE:5444)	4.72%	★★★★★★
Soliton Systems K.K (TSE:3040)	4.22%	★★★★★★
E J Holdings (TSE:2153)	4.91%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.31%	★★★★★★

Click here to see the full list of 1210 stocks from our Top Asian Dividend Stocks screener.

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

Sankyo (TSE:6417)

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

Overview: Sankyo Co., Ltd. is a Japanese company that manufactures and sells game machines and ball bearing supply systems, with a market cap of ¥527.28 billion.

Operations: Sankyo Co., Ltd. generates its revenue primarily from the manufacturing and sales of game machines and ball bearing supply systems in Japan.

Dividend Yield: 4.2%

Sankyo Co., Ltd. recently announced a dividend increase to ¥60 per share, with guidance for further increases to ¥90 next year, indicating a commitment to returning profits to shareholders. The company's dividends are well-covered by earnings and cash flows with payout ratios of 39% and 42.5%, respectively. However, the dividend history has been volatile over the past decade. Additionally, Sankyo's share buyback program aims to enhance capital efficiency and shareholder returns by repurchasing up to ¥60 billion worth of shares by March 2026.

• Click here to discover the nuances of Sankyo with our detailed analytical dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Sankyo shares in the market.

Narasaki Sangyo (TSE:8085)

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

Overview: Narasaki Sangyo Co., Ltd. operates in Japan, focusing on the sale of electric machinery, equipment, and petroleum products to both industrial and household sectors, with a market cap of ¥15.84 billion.

Operations: Narasaki Sangyo Co., Ltd.'s revenue segments include Machine Related Business at ¥10.84 billion, Shipping Related Business at ¥16.10 billion, Electrical Related Business at ¥26.77 billion, and Construction Energy Related Business at ¥57.98 billion.

Dividend Yield: 3.4%

Narasaki Sangyo offers a stable dividend yield of 3.36%, though it falls short compared to the top quartile in Japan. Its dividends have shown consistency over the past decade, supported by a low payout ratio of 23.5% and adequate cash flow coverage at 69.3%. The company's earnings growth of 4.1% last year further underpins its ability to sustain dividends, with shares trading significantly below estimated fair value, suggesting potential for capital appreciation alongside income stability.

• Get an in-depth perspective on Narasaki Sangyo's performance by reading our dividend report here.
• Upon reviewing our latest valuation report, Narasaki Sangyo's share price might be too pessimistic.

Konoike TransportLtd (TSE:9025)

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

Overview: Konoike Transport Co., Ltd. offers logistics services both in Japan and internationally, with a market cap of ¥156.35 billion.

Operations: Konoike Transport Co., Ltd. generates revenue through its logistics services provided both domestically and internationally.

Dividend Yield: 3.3%

Konoike Transport's dividend yield of 3.26% is below the top quartile in Japan, with a history of volatility over the past decade. Despite this, dividends are well-covered by earnings and cash flows, with payout ratios at 24.3% and 37.6%, respectively. Earnings grew by 23.8% last year, supporting dividend sustainability despite past inconsistencies. The stock trades at a significant discount to its estimated fair value, indicating potential for capital gains alongside income generation.

• Unlock comprehensive insights into our analysis of Konoike TransportLtd stock in this dividend report.
• Our comprehensive valuation report raises the possibility that Konoike TransportLtd is priced lower than what may be justified by its financials.

Seize The Opportunity

• Discover the full array of 1210 Top Asian Dividend Stocks right here.
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Interested In Other Possibilities?

• 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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