3 Compelling Dividend Stocks Yielding Up To 3.9%

As global markets continue to reach record highs, driven by positive sentiment and geopolitical developments, investors are increasingly focused on securing stable returns amid fluctuating economic conditions. In this environment, dividend stocks have become particularly appealing due to their potential for providing consistent income streams while also offering a measure of stability in uncertain times.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.23%	★★★★★★
GakkyushaLtd (TSE:9769)	4.70%	★★★★★★
CAC Holdings (TSE:4725)	4.61%	★★★★★★
Yamato Kogyo (TSE:5444)	3.88%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.23%	★★★★★★
Padma Oil (DSE:PADMAOIL)	6.64%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.34%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.89%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.38%	★★★★★★
E J Holdings (TSE:2153)	3.91%	★★★★★★

Click here to see the full list of 1964 stocks from our Top Dividend Stocks screener.

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

Loomis (OM:LOOMIS)

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

Overview: Loomis AB (publ) offers solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables with a market cap of approximately SEK23.58 billion.

Operations: Loomis AB's revenue segments include SEK0.09 billion from Loomis Pay, SEK14.49 billion from Europe and Latin America, and SEK15.48 billion from the United States of America (USA).

Dividend Yield: 3.7%

Loomis offers a mixed dividend profile. While the company's dividends are well-covered by earnings and cash flows, with a payout ratio of 56.8% and cash payout ratio of 20.8%, its dividend history has been volatile over the past decade, indicating unreliability. Recent financial performance shows steady growth in earnings, with Q3 net income rising to SEK 481 million from SEK 421 million year-over-year, supporting potential future payouts despite historical volatility concerns.

• Take a closer look at Loomis' potential here in our dividend report.
• Upon reviewing our latest valuation report, Loomis' share price might be too pessimistic.

Zhejiang Jiuzhou Pharmaceutical (SHSE:603456)

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

Overview: Zhejiang Jiuzhou Pharmaceutical Co., Ltd is engaged in the manufacturing and sale of active pharmaceutical ingredients (API) and intermediates both in China and internationally, with a market cap of CN¥13.42 billion.

Operations: Zhejiang Jiuzhou Pharmaceutical Co., Ltd generates its revenue primarily through the production and distribution of active pharmaceutical ingredients (API) and intermediates across domestic and international markets.

Dividend Yield: 3.4%

Zhejiang Jiuzhou Pharmaceutical's dividend profile shows mixed signals. While the company offers a competitive dividend yield of 3.35%, which ranks in the top 25% in China, its dividends have been volatile and unreliable over the past decade, with significant annual drops. Despite a reasonable payout ratio of 64.6%, dividends are not well-covered by free cash flows, raising sustainability concerns amid declining earnings and revenue for the nine months ending September 2024.

• Get an in-depth perspective on Zhejiang Jiuzhou Pharmaceutical's performance by reading our dividend report here.
• According our valuation report, there's an indication that Zhejiang Jiuzhou Pharmaceutical's share price might be on the cheaper side.

Nihon Parkerizing (TSE:4095)

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

Overview: Nihon Parkerizing Co., Ltd. manufactures and supplies surface treatment chemicals both in Japan and internationally, with a market cap of ¥150.75 billion.

Operations: Nihon Parkerizing Co., Ltd.'s revenue is primarily derived from its Chemicals Segment at ¥58.39 billion, followed by the Processing Business at ¥47.28 billion and the Equipment Business at ¥22.79 billion.

Dividend Yield: 3.9%

Nihon Parkerizing offers a stable dividend profile with a yield of 3.91%, ranking in the top 25% of Japanese dividend payers. Its dividends have been reliably growing over the past decade, supported by a low payout ratio of 17.6% and reasonable cash flow coverage at 60.7%. Recent share buybacks totaling ¥3.06 billion may enhance shareholder value despite past dilution concerns, while its price-to-earnings ratio of 11.4x suggests good value compared to the market average.

• Click to explore a detailed breakdown of our findings in Nihon Parkerizing's dividend report.
• The analysis detailed in our Nihon Parkerizing valuation report hints at an inflated share price compared to its estimated value.

Key Takeaways

• Investigate our full lineup of 1964 Top Dividend Stocks right here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

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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