Stock Analysis

February 2025's Best Dividend Stocks For Your Portfolio

Published

As global markets navigate through the turbulence of tariff uncertainties and mixed economic indicators, investors are keenly observing shifts in sectors such as manufacturing and services. Despite these challenges, dividend stocks remain a focal point for those seeking steady income streams, particularly when market volatility underscores the appeal of reliable payouts.

Top 10 Dividend Stocks

NameDividend YieldDividend Rating
Totech (TSE:9960)3.78%★★★★★★
Tsubakimoto Chain (TSE:6371)4.26%★★★★★★
Guaranty Trust Holding (NGSE:GTCO)5.78%★★★★★★
Peoples Bancorp (NasdaqGS:PEBO)4.74%★★★★★★
Wuliangye YibinLtd (SZSE:000858)4.04%★★★★★★
Citizens & Northern (NasdaqCM:CZNC)5.13%★★★★★★
China South Publishing & Media Group (SHSE:601098)4.09%★★★★★★
HUAYU Automotive Systems (SHSE:600741)4.18%★★★★★★
Archer-Daniels-Midland (NYSE:ADM)4.48%★★★★★★
Yamato Kogyo (TSE:5444)3.87%★★★★★★

Click here to see the full list of 1954 stocks from our Top Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

illimity Bank (BIT:ILTY)

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

Overview: illimity Bank S.p.A. operates in Italy offering private banking, investment, and trading services with a market cap of €309.81 million.

Operations: illimity Bank S.p.A. generates its revenue through segments including B-Ilty (€15.60 million), Corporate Banking (€82.60 million), Investment Banking (€15.70 million), and Specialised Credit (€62.20 million).

Dividend Yield: 6.7%

illimity Bank's dividend payments are well covered by earnings, with a current payout ratio of 34.5% and forecasts indicating continued coverage in three years at 21.5%. Despite its high dividend yield being among the top 25% in Italy, illimity has only paid dividends for two years, raising concerns about long-term reliability. Recent earnings showed a decline, and the bank faces challenges with high levels of bad loans (13.9%). Additionally, an acquisition proposal by Banca IFIS could impact future dividend prospects if completed as planned in September 2025.

BIT:ILTY Dividend History as at Feb 2025

La Kaffa International (TPEX:2732)

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

Overview: La Kaffa International Co., Ltd. operates a franchise of chain restaurants in Taiwan and internationally, with a market cap of NT$4.45 billion.

Operations: La Kaffa International Co., Ltd. generates revenue from several segments, including NT$164.38 million from China, NT$814 million from America and Australia, and NT$1.37 billion from its Kingza Subsidiary in Taiwan.

Dividend Yield: 5.1%

La Kaffa International's dividend yield of 5.12% ranks in the top 25% in Taiwan, yet its sustainability is questionable due to a high payout ratio of 99.9%, indicating dividends aren't well covered by earnings. Although dividends have grown over ten years, they've been volatile with significant annual drops. Recent earnings show declining net income and EPS compared to last year, raising concerns about future dividend reliability despite being covered by cash flows with a payout ratio of 71.6%.

TPEX:2732 Dividend History as at Feb 2025

Mizuho Leasing Company (TSE:8425)

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

Overview: Mizuho Leasing Company, Limited offers general leasing services both in Japan and internationally, with a market cap of ¥292.50 billion.

Operations: Mizuho Leasing Company, Limited generates revenue through its general leasing services provided domestically and internationally.

Dividend Yield: 4%

Mizuho Leasing Company has increased its dividend guidance to ¥23 per share, reflecting improved profitability and a commitment to shareholder returns. Despite a low payout ratio of 13.2%, dividends have been volatile over the past decade, with significant annual drops. The company's financial position is challenged by debt not well covered by operating cash flow, and it lacks free cash flows to sustain dividends. Recent earnings growth supports the revised dividend outlook amidst these concerns.

TSE:8425 Dividend History as at Feb 2025

Key Takeaways

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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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