Top 3 Dividend Stocks To Enhance Your Portfolio

In a week marked by rate cuts from the ECB and SNB, global markets showed mixed performance, with major U.S. indexes mostly declining except for the Nasdaq Composite reaching a new milestone. As inflationary pressures persist and labor market data suggest cooling, investors are increasingly focused on income-generating assets like dividend stocks to navigate uncertain economic conditions. A good dividend stock can provide stable returns through regular payouts, offering a buffer against market volatility while contributing to long-term portfolio growth.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Peoples Bancorp (NasdaqGS:PEBO)	4.62%	★★★★★★
Tsubakimoto Chain (TSE:6371)	4.23%	★★★★★★
CAC Holdings (TSE:4725)	4.72%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.19%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.35%	★★★★★★
Nihon Parkerizing (TSE:4095)	4.01%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.60%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.36%	★★★★★★
E J Holdings (TSE:2153)	3.85%	★★★★★★
Citizens & Northern (NasdaqCM:CZNC)	5.67%	★★★★★★

Click here to see the full list of 1937 stocks from our Top Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Soosan Industries (KOSE:A126720)

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

Overview: Soosan Industries Co., Ltd. offers power plant construction and maintenance services in South Korea, with a market cap of ₩274.10 billion.

Operations: Soosan Industries Co., Ltd. generates revenue primarily from power plant maintenance services amounting to ₩311.62 billion and solar power contributing ₩10.92 billion in South Korea.

Dividend Yield: 4.1%

Soosan Industries' dividend payments, although only established for two years, are well-covered by earnings and cash flows with payout ratios of 27% and 40.6%, respectively. Its dividend yield of 4.08% ranks in the top quartile within the Korean market. The company's price-to-earnings ratio of 6.6x suggests it may be undervalued compared to the broader market average of 11.4x, offering potential value for investors seeking dividends.

• Click to explore a detailed breakdown of our findings in Soosan Industries' dividend report.
• According our valuation report, there's an indication that Soosan Industries' share price might be on the expensive side.

CUCKOO Homesys (KOSE:A284740)

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

Overview: CUCKOO Homesys Co., Ltd. is involved in the manufacture, sale, and rental of household appliances with a market cap of ₩451.81 billion.

Operations: CUCKOO Homesys Co., Ltd.'s revenue primarily comes from its rental segment, generating ₩1.09 trillion, with additional income from IT services amounting to ₩55.88 million, while the coordination segment shows a negative value of -₩88.31 million.

Dividend Yield: 4%

CUCKOO Homesys has demonstrated strong financial performance with a net income increase to KRW 20.91 billion for Q3 2024, supporting its dividend strategy. The company offers a competitive dividend yield in the top 25% of the Korean market and maintains stable payments despite only five years of history. Dividends are well-covered by earnings (14% payout ratio) and cash flows (33.3% cash payout ratio), indicating sustainability, although its trading value is significantly below estimated fair value.

• Unlock comprehensive insights into our analysis of CUCKOO Homesys stock in this dividend report.
• Our valuation report unveils the possibility CUCKOO Homesys' shares may be trading at a discount.

Taisei Oncho (TSE:1904)

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

Overview: Taisei Oncho Co., Ltd. specializes in the design and construction of air conditioning, water supply/drainage sanitary, and electrical equipment systems in Japan, with a market cap of ¥22.38 billion.

Operations: Taisei Oncho Co., Ltd.'s revenue segments are ¥11.87 billion from the USA, ¥3.02 billion from China, ¥47.66 billion from Japan, and ¥28.29 million from Australia.

Dividend Yield: 3.5%

Taisei Oncho's dividend payments have been stable and growing over the past decade, with a payout ratio of 38.9% indicating coverage by earnings, though not by free cash flows. Despite a lower-than-top-tier yield of 3.47%, its price-to-earnings ratio is attractive compared to the JP market average. Recent share buybacks aim to enhance capital efficiency and shareholder returns amidst dilution concerns following an equity offering, underscoring commitment to maintaining dividend reliability.

• Get an in-depth perspective on Taisei Oncho's performance by reading our dividend report here.
• The valuation report we've compiled suggests that Taisei Oncho's current price could be inflated.

Taking Advantage

• Unlock more gems! Our Top Dividend Stocks screener has unearthed 1934 more companies for you to explore.Click here to unveil our expertly curated list of 1937 Top Dividend Stocks.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Looking For Alternative Opportunities?

• 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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