Stock Analysis

Three Dividend Stocks To Consider For Your Portfolio

TSE:5901
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As global markets react to the Trump administration's emerging policies, U.S. stocks have reached record highs, buoyed by optimism around softer tariffs and AI investments. In this dynamic environment, dividend stocks can offer a blend of income and potential growth, making them an appealing option for investors seeking stability amidst market fluctuations.

Top 10 Dividend Stocks

NameDividend YieldDividend Rating
Tsubakimoto Chain (TSE:6371)4.25%★★★★★★
Guaranty Trust Holding (NGSE:GTCO)6.04%★★★★★★
Peoples Bancorp (NasdaqGS:PEBO)4.90%★★★★★★
Wuliangye YibinLtd (SZSE:000858)3.67%★★★★★★
Southside Bancshares (NYSE:SBSI)4.49%★★★★★★
Padma Oil (DSE:PADMAOIL)7.45%★★★★★★
China South Publishing & Media Group (SHSE:601098)4.01%★★★★★★
Citizens & Northern (NasdaqCM:CZNC)5.41%★★★★★★
HUAYU Automotive Systems (SHSE:600741)4.46%★★★★★★
E J Holdings (TSE:2153)4.04%★★★★★★

Click here to see the full list of 1971 stocks from our Top Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Luyang Energy-Saving Materials (SZSE:002088)

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

Overview: Luyang Energy-Saving Materials Co., Ltd. is engaged in the research, development, production, and sale of energy-saving products such as ceramic fiber, alumina fiber, soluble fiber, basalt fiber, and insulating firebrick both in China and internationally with a market cap of CN¥6.13 billion.

Operations: Luyang Energy-Saving Materials Co., Ltd. generates revenue through the production and sale of energy-efficient materials, including ceramic fiber, alumina fiber, soluble fiber, basalt fiber, and insulating firebrick for domestic and international markets.

Dividend Yield: 6.5%

Luyang Energy-Saving Materials offers a dividend yield of 6.46%, placing it among the top 25% of dividend payers in China. However, the sustainability is questionable as dividends are not well covered by free cash flows and have been volatile over the past decade. The company's payout ratio is high at 87.1%, and its price-to-earnings ratio of 13.5x suggests it trades at good value compared to peers, despite recent declines in earnings and revenue.

SZSE:002088 Dividend History as at Jan 2025
SZSE:002088 Dividend History as at Jan 2025

Toyo Seikan Group Holdings (TSE:5901)

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

Overview: Toyo Seikan Group Holdings, Ltd. manufactures and sells packaging containers both in Japan and internationally, with a market cap of ¥381.83 billion.

Operations: Toyo Seikan Group Holdings generates revenue primarily from its Packaging Business at ¥601.74 billion, followed by the Engineering / Filling / Logistics Business at ¥231.32 billion, Steel Plate Business at ¥112.21 billion, and Functional Material Related Business at ¥47.26 billion, with additional contributions from its Real Estate Related Business totaling ¥9.54 billion.

Dividend Yield: 3.9%

Toyo Seikan Group Holdings' dividend yield is in the top 25% of Japan's market, but its dividends have been volatile over the past decade. Despite this instability, recent earnings growth of 61.9% supports a payout ratio of 75.6%, indicating dividends are covered by earnings and cash flows, with a low cash payout ratio of 24.7%. The company trades at a considerable discount to estimated fair value, though its dividend history remains inconsistent despite increases over ten years.

TSE:5901 Dividend History as at Jan 2025
TSE:5901 Dividend History as at Jan 2025

Daiichikosho (TSE:7458)

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

Overview: Daiichikosho Co., Ltd. operates in Japan, focusing on the sale and rental of commercial karaoke systems, with a market cap of ¥186.70 billion.

Operations: Daiichikosho Co., Ltd. generates revenue primarily from its Commercial Karaoke segment, which accounts for ¥61.39 billion, and its Karaoke and Restaurant Business, contributing ¥65.87 billion.

Dividend Yield: 3.1%

Daiichikosho's dividends have been stable and growing over the past decade, supported by a low payout ratio of 38.9%, though not covered by free cash flows. The dividend yield of 3.13% is below Japan's top quartile payers. Despite high non-cash earnings, future earnings are expected to decline by 3.3% annually over three years. Recent announcements include a consistent JPY 28 per share dividend and an upcoming karaoke system launch in April 2025, potentially impacting future revenue streams positively.

TSE:7458 Dividend History as at Jan 2025
TSE:7458 Dividend History as at Jan 2025

Key Takeaways

Interested In Other Possibilities?

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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About TSE:5901

Toyo Seikan Group Holdings

Manufactures and sells packaging containers in Japan and internationally.

Solid track record with excellent balance sheet and pays a dividend.

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