3 Asian Dividend Stocks Yielding Up To 3.7%

As global markets navigate a landscape marked by mixed economic signals and shifting monetary policies, investors are increasingly looking to Asia for stability and growth opportunities. In this context, dividend stocks in the region have garnered attention as potential sources of steady income, particularly amidst uncertainties such as fluctuating interest rates and evolving trade dynamics.

Top 10 Dividend Stocks In Asia

Click here to see the full list of 1053 stocks from our Top Asian Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Soliton Systems K.K (TSE:3040)

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

Overview: Soliton Systems K.K. is a technology company that offers IT security-related and embedded systems both in Japan and internationally, with a market cap of ¥27.98 billion.

Operations: Soliton Systems K.K. generates revenue through its IT Security segment, which contributes ¥17.64 billion, followed by Visual Communication at ¥991 million, and Eco New Business Development at ¥189 million.

Dividend Yield: 3.4%

Soliton Systems K.K. offers a stable dividend profile with payments that have been reliable and growing over the past decade, supported by both earnings and cash flows. Trading at 10.3% below its estimated fair value, it presents a potentially attractive opportunity for investors seeking stability in dividend returns. Although its dividend yield of 3.45% is slightly below the top quartile in Japan, the payout ratios indicate sustainability with earnings coverage at 70.2% and cash flow coverage at 41.1%.

• Click to explore a detailed breakdown of our findings in Soliton Systems K.K's dividend report.
• The valuation report we've compiled suggests that Soliton Systems K.K's current price could be quite moderate.

TOCALOLtd (TSE:3433)

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

Overview: TOCALO Co., Ltd. develops surface modifying technologies both in Japan and internationally, with a market cap of ¥134.25 billion.

Operations: TOCALO Co., Ltd.'s revenue segments are not specified in the provided text.

Dividend Yield: 3.1%

TOCALO Ltd. offers stable dividends with a 10-year growth trend, yet its 3.1% yield is below Japan's top tier. Despite a low payout ratio of 46.2%, cash flow coverage is weak at 118.9%. Recent U.S. expansion via TOCALO USA Arizona LLC aims to enhance semiconductor services, potentially strengthening future earnings and dividend sustainability as the company trades at a significant discount to fair value estimates, suggesting room for capital appreciation alongside dividends.

• Delve into the full analysis dividend report here for a deeper understanding of TOCALOLtd.
• The analysis detailed in our TOCALOLtd valuation report hints at an deflated share price compared to its estimated value.

IDOM (TSE:7599)

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

Overview: IDOM Inc. engages in the purchase and sale of used cars both within Japan and internationally, with a market cap of ¥108.14 billion.

Operations: IDOM Inc.'s primary revenue segment is its Used Car Business, which generated ¥510.65 billion.

Dividend Yield: 3.8%

IDOM Inc.'s dividend profile is mixed, with a recent increase to JPY 22.41 per share for Q2 FY2026 contrasted by a decrease in annual guidance to JPY 18.22 per share. Despite a low payout ratio of 31.5%, dividends are not covered by free cash flows, raising sustainability concerns. Earnings have grown significantly over five years and are expected to continue at 10.93% annually, yet volatile past dividends and uncovered debt suggest caution for income-focused investors.

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

Make It Happen

• Explore the 1053 names from our Top Asian Dividend Stocks screener here.
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Looking For Alternative Opportunities?

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• 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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