3 Leading Dividend Stocks Yielding Up To 3.5%

As global markets experience a rebound, driven by easing core inflation in the U.S. and robust bank earnings, investors are increasingly looking towards dividend stocks as a stable source of income amidst fluctuating economic conditions. With major indices such as the S&P 500 and Dow Jones showing significant gains, identifying reliable dividend stocks yielding up to 3.5% can offer investors an opportunity to benefit from both potential capital appreciation and regular income streams in today's market environment.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Guaranty Trust Holding (NGSE:GTCO)	6.07%	★★★★★★
Peoples Bancorp (NasdaqGS:PEBO)	4.97%	★★★★★★
CAC Holdings (TSE:4725)	4.68%	★★★★★★
Yamato Kogyo (TSE:5444)	4.08%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.49%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.49%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.59%	★★★★★★
Nihon Parkerizing (TSE:4095)	4.01%	★★★★★★
Premier Financial (NasdaqGS:PFC)	4.91%	★★★★★★
Citizens & Northern (NasdaqCM:CZNC)	5.91%	★★★★★★

Click here to see the full list of 1978 stocks from our Top Dividend Stocks screener.

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

IKK Holdings (TSE:2198)

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

Overview: IKK Holdings Inc. operates in Japan across various sectors including wedding services, nursing care, food, financial services, photography, and matrimonial matchmaking with a market cap of ¥22.24 billion.

Operations: IKK Holdings Inc. generates revenue from its diverse business segments, which include wedding services, nursing care, food, financial services, photography, and matrimonial matchmaking in Japan.

Dividend Yield: 3.1%

IKK Holdings' dividend payments are well covered by both earnings and cash flows, with a payout ratio of 40.6% and a cash payout ratio of 20.3%. However, the company's dividends have been volatile over the past decade, experiencing significant drops at times. Despite recent growth in earnings by 27%, future earnings are expected to decline. The current dividend yield is relatively low compared to top-tier payers in Japan's market.

• Click to explore a detailed breakdown of our findings in IKK Holdings' dividend report.
• Our valuation report unveils the possibility IKK Holdings' shares may be trading at a discount.

Ichikoh Industries (TSE:7244)

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

Overview: Ichikoh Industries, Ltd., along with its subsidiaries, develops, manufactures, and sells automotive electrical equipment and parts both in Japan and internationally, with a market cap of ¥37.98 billion.

Operations: Ichikoh Industries, Ltd. generates revenue from its segments with ¥7.78 million from Supplies and ¥121.25 billion from Automotive Parts.

Dividend Yield: 3.3%

Ichikoh Industries' dividends are well-supported by earnings and cash flows, with payout ratios of 23.6% and 14.4%, respectively. However, the dividend history shows volatility over the past decade, including significant drops exceeding 20%. The current yield of 3.29% is below Japan's top-tier dividend payers at 3.82%. Trading at a favorable P/E ratio of 7.8x compared to the market average of 13.5x suggests good relative value despite an unstable dividend track record.

• Get an in-depth perspective on Ichikoh Industries' performance by reading our dividend report here.
• Our expertly prepared valuation report Ichikoh Industries implies its share price may be lower than expected.

Paramount Bed Holdings (TSE:7817)

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

Overview: Paramount Bed Holdings Co., Ltd. manufactures and sells beds, mattresses, and equipment for medical and nursing care in Japan, with a market cap of ¥150.85 billion.

Operations: Paramount Bed Holdings Co., Ltd. generates revenue from its Healthcare-Related Business segment, which amounted to ¥104.97 billion.

Dividend Yield: 3.6%

Paramount Bed Holdings has a dividend yield of 3.59%, slightly below the top tier in Japan. While dividends have been stable and growing over the past decade, they are not well covered by cash flows, with a high cash payout ratio of 118%. Recent share buybacks totaling ¥2.68 billion aim to enhance shareholder returns and capital efficiency. The stock trades at a significant discount to estimated fair value, potentially offering value despite coverage concerns.

• Dive into the specifics of Paramount Bed Holdings here with our thorough dividend report.
• Upon reviewing our latest valuation report, Paramount Bed Holdings' share price might be too pessimistic.

Where To Now?

• Gain an insight into the universe of 1978 Top Dividend Stocks by clicking here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
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Seeking Other Investments?

• 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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