Stock Analysis

February 2025's Leading Dividend Stocks To Consider

TSE:3817
Source: Shutterstock

As global markets navigate a landscape marked by fluctuating corporate earnings, AI competition concerns, and central bank rate decisions, investors are keenly observing the performance of major indices. Amidst this volatility, dividend stocks continue to attract attention for their potential to provide steady income streams and resilience in uncertain times. In light of these market dynamics, selecting dividend stocks with strong fundamentals and consistent payout histories can be a strategic approach for investors seeking stability and income in their portfolios.

Top 10 Dividend Stocks

NameDividend YieldDividend Rating
Tsubakimoto Chain (TSE:6371)4.24%★★★★★★
Guaranty Trust Holding (NGSE:GTCO)5.78%★★★★★★
Peoples Bancorp (NasdaqGS:PEBO)4.74%★★★★★★
Padma Oil (DSE:PADMAOIL)7.55%★★★★★★
CAC Holdings (TSE:4725)4.48%★★★★★★
Daito Trust ConstructionLtd (TSE:1878)4.03%★★★★★★
Citizens & Northern (NasdaqCM:CZNC)5.13%★★★★★★
Nihon Parkerizing (TSE:4095)3.93%★★★★★★
FALCO HOLDINGS (TSE:4671)6.66%★★★★★★
Archer-Daniels-Midland (NYSE:ADM)4.48%★★★★★★

Click here to see the full list of 1944 stocks from our Top Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

SRA Holdings (TSE:3817)

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

Overview: SRA Holdings, Inc. operates in systems development, operation/administration, and product solutions marketing both in Japan and internationally, with a market cap of ¥55.65 billion.

Operations: SRA Holdings generates revenue from Sales Business (¥16.91 billion), Operation/Construction Business (¥6.72 billion), and Construction in Progress - Development (¥25.32 billion).

Dividend Yield: 3.8%

SRA Holdings offers a stable dividend profile, with consistent growth and reliability over the past decade. The dividend yield of 3.8% ranks in the top 25% of Japan's market, supported by a reasonable payout ratio of 66.7% from earnings and an 87.9% cash payout ratio. Earnings have surged by over two times in the past year, enhancing dividend sustainability. Its price-to-earnings ratio of 15x suggests good value compared to industry peers.

TSE:3817 Dividend History as at Feb 2025
TSE:3817 Dividend History as at Feb 2025

Trinity Industrial (TSE:6382)

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

Overview: Trinity Industrial Corporation designs, manufactures, sells, and installs coating plants, machinery, and industrial equipment in Japan with a market cap of ¥18.01 billion.

Operations: Trinity Industrial's revenue is primarily derived from its Equipment Department, contributing ¥29.65 billion, and its Auto Parts Department, which adds ¥10.27 billion.

Dividend Yield: 4.5%

Trinity Industrial's dividend yield of 4.47% is among the top 25% in Japan, supported by a low payout ratio of 31.2%. However, dividends have been volatile over the past decade with significant annual drops and are not covered by free cash flows despite recent earnings growth of 9.2%. The stock is attractively valued with a price-to-earnings ratio of 7.9x, well below the market average, though its share price has been highly volatile recently.

TSE:6382 Dividend History as at Feb 2025
TSE:6382 Dividend History as at Feb 2025

Sangetsu (TSE:8130)

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

Overview: Sangetsu Corporation, along with its subsidiaries, is involved in the planning, development, manufacture, sale, and installation of interior decorating products both in Japan and internationally; it has a market cap of approximately ¥168.67 billion.

Operations: Sangetsu Corporation generates its revenue from various segments, including ¥26.16 billion from abroad, ¥6.39 billion from domestic exterior products, and ¥160.62 billion from domestic interior products, which include space creation.

Dividend Yield: 5%

Sangetsu offers a compelling dividend yield of 5.02%, ranking in the top 25% of Japanese dividend payers, with stable and growing dividends over the past decade. The payout ratios are sustainable, covered by earnings (72.4%) and cash flows (68.9%). Recent guidance indicates steady financial performance, expecting net sales of ¥196 billion and operating profit of ¥16 billion for fiscal year ending March 2025. Dividends have increased from ¥65 to ¥75 per share recently, reflecting growth confidence.

TSE:8130 Dividend History as at Feb 2025
TSE:8130 Dividend History as at Feb 2025

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Contemplating Other Strategies?

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:3817

SRA Holdings

Engages in systems development, operation/administration, and product solutions marketing businesses in Japan and internationally.

Flawless balance sheet 6 star dividend payer.

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