Discover January 2025's Top Dividend Stocks

As global markets navigate the early days of 2025, optimism is fueled by potential trade negotiations and advancements in artificial intelligence, with major U.S. indices like the S&P 500 reaching new highs amid these developments. In this dynamic environment, dividend stocks continue to attract attention as they offer a combination of income and potential stability, which can be particularly appealing given the current economic backdrop.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Wuliangye YibinLtd (SZSE:000858)	3.67%	★★★★★★
CAC Holdings (TSE:4725)	4.57%	★★★★★★
Yamato Kogyo (TSE:5444)	4.10%	★★★★★★
GakkyushaLtd (TSE:9769)	4.36%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.01%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.46%	★★★★★★
Nihon Parkerizing (TSE:4095)	3.94%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.51%	★★★★★★
E J Holdings (TSE:2153)	4.00%	★★★★★★
DoshishaLtd (TSE:7483)	3.79%	★★★★★★

Click here to see the full list of 1959 stocks from our Top Dividend Stocks screener.

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

Xi'an Shaangu Power (SHSE:601369)

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

Overview: Xi'an Shaangu Power Co., Ltd. offers systematic solutions and services in the People's Republic of China and has a market cap of CN¥13.94 billion.

Operations: Xi'an Shaangu Power Co., Ltd. generates revenue through its provision of systematic solutions and services within the People's Republic of China.

Dividend Yield: 4.5%

Xi'an Shaangu Power's dividend yield of 4.46% ranks in the top 25% of Chinese dividend payers, but its high payout ratio of 101.2% indicates dividends are not well covered by earnings. Despite a recent 9% earnings growth and trading at a favorable price-to-earnings ratio compared to peers, the company's dividend history shows volatility and unreliability over the past decade, raising concerns about sustainability despite being covered by cash flows.

• Click here and access our complete dividend analysis report to understand the dynamics of Xi'an Shaangu Power.
• Upon reviewing our latest valuation report, Xi'an Shaangu Power's share price might be too pessimistic.

Sugimoto (TSE:9932)

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

Overview: Sugimoto & Co., Ltd. is involved in the sale, import, and export of machinery and equipment both in Japan and internationally, with a market cap of ¥25.73 billion.

Operations: Sugimoto & Co., Ltd.'s revenue is derived from ¥1.67 billion abroad, ¥13.26 billion from the Central region, ¥11.60 billion from the Eastern region, and ¥21.22 billion from the Western region in Japan.

Dividend Yield: 3%

Sugimoto's dividend yield of 2.98% falls short of the top 25% in Japan, but its payout ratio of 56.9% suggests dividends are well-covered by earnings. Cash flow coverage is also reasonable at a 67.8% cash payout ratio, although the dividend history has been volatile and unreliable over the past decade, with periods of instability. Despite trading significantly below estimated fair value, these factors may impact its attractiveness for dividend-focused investors.

• Dive into the specifics of Sugimoto here with our thorough dividend report.
• Our expertly prepared valuation report Sugimoto implies its share price may be too high.

Sac's Bar Holdings (TSE:9990)

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

Overview: Sac's Bar Holdings Inc. operates in Japan, focusing on the retail sale of bags, fashion goods, and related accessories with a market cap of ¥27.17 billion.

Operations: Sac's Bar Holdings Inc. generates revenue primarily through product sales, centered around bags and pouches, amounting to ¥52.42 billion.

Dividend Yield: 3.2%

Sac's Bar Holdings' dividend yield of 3.21% is below the top 25% in Japan, yet the payout ratio of 33.9% and cash payout ratio of 20.6% indicate strong coverage by earnings and cash flows. Despite a history of volatility over the past decade, dividends have grown during this period. The stock trades at a significant discount to its estimated fair value, although its unstable dividend track record may concern some investors seeking reliability.

• Delve into the full analysis dividend report here for a deeper understanding of Sac's Bar Holdings.
• Our comprehensive valuation report raises the possibility that Sac's Bar Holdings is priced lower than what may be justified by its financials.

Next Steps

• Click here to access our complete index of 1959 Top Dividend Stocks.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Curious About Other Options?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com