Top Dividend Stocks To Watch In January 2025

As global markets navigate a mixed economic landscape marked by fluctuating consumer confidence and manufacturing declines, major indices like the Nasdaq Composite and S&P 500 have shown moderate gains amidst a backdrop of cautious optimism. In this environment, dividend stocks offer an appealing option for investors seeking stability and income, as they can provide regular payouts even when market volatility is high.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.09%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.33%	★★★★★★
CAC Holdings (TSE:4725)	4.84%	★★★★★★
Yamato Kogyo (TSE:5444)	4.04%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.36%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.42%	★★★★★★
GakkyushaLtd (TSE:9769)	4.38%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	3.66%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.26%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.38%	★★★★★★

Click here to see the full list of 1941 stocks from our Top Dividend Stocks screener.

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

Yahagi ConstructionLtd (TSE:1870)

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

Overview: Yahagi Construction Co., Ltd. is involved in the construction of buildings in Japan and has a market cap of ¥68.50 billion.

Operations: Yahagi Construction Co., Ltd. generates revenue from its building construction activities in Japan.

Dividend Yield: 3.8%

Yahagi Construction Ltd. recently increased its dividend to ¥40 per share, up from ¥30 last year, reflecting a commitment to rewarding shareholders. The company's dividend yield of 3.77% ranks in the top 25% of the Japanese market and has been stable over the past decade. With a payout ratio of 60.4%, dividends are well-covered by earnings and cash flows, supported by strong earnings growth of 48.5% over the past year, suggesting sustainability and reliability for investors seeking income stability.

• Unlock comprehensive insights into our analysis of Yahagi ConstructionLtd stock in this dividend report.
• Upon reviewing our latest valuation report, Yahagi ConstructionLtd's share price might be too optimistic.

Nitto Fuji Flour MillingLtd (TSE:2003)

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

Overview: Nitto Fuji Flour Milling Co., Ltd. manufactures and sells flour products in Japan, with a market cap of ¥61.46 billion.

Operations: Nitto Fuji Flour Milling Co., Ltd. generates its revenue primarily through the manufacturing and sale of flour products in Japan.

Dividend Yield: 4.1%

Nitto Fuji Flour Milling Ltd. offers a dividend yield of 4.15%, placing it among the top 25% in Japan, with dividends well-covered by earnings and cash flows, as indicated by a payout ratio of 25.5% and a cash payout ratio of 58.6%. However, the company's dividend history is marked by volatility and unreliability over the past decade, despite consistent earnings growth of 4.7% annually over five years, posing potential concerns for income-focused investors.

• Click here and access our complete dividend analysis report to understand the dynamics of Nitto Fuji Flour MillingLtd.
• Our expertly prepared valuation report Nitto Fuji Flour MillingLtd implies its share price may be lower than expected.

Innotech (TSE:9880)

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

Overview: Innotech Corporation, along with its subsidiaries, operates in the import and sale of electronic design automation software, electric components, and semiconductor products both in Japan and internationally, with a market cap of ¥18.67 billion.

Operations: Innotech Corporation's revenue is primarily derived from its Test Solution Business at ¥16.02 billion, System and Service Business contributing ¥13.59 billion, and Semiconductor Design-Related Business generating ¥13.14 billion.

Dividend Yield: 5%

Innotech Corporation's dividend yield of 5.05% ranks in the top 25% of Japanese dividend payers, but its sustainability is questionable due to a high cash payout ratio of 99.6%, indicating poor coverage by free cash flows. Despite stable and growing dividends over the past decade, recent profit margins have declined from last year, and large one-off items have impacted earnings quality. The company announced a share buyback program worth ¥500 million to enhance shareholder returns.

• Click to explore a detailed breakdown of our findings in Innotech's dividend report.
• The analysis detailed in our Innotech valuation report hints at an inflated share price compared to its estimated value.

Make It Happen

• Delve into our full catalog of 1941 Top Dividend Stocks here.
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Ready To Venture Into Other Investment Styles?

• 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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