Asian Dividend Stocks To Enhance Your Portfolio

As global markets navigate a landscape marked by trade tensions and economic adjustments, the Asian market presents unique opportunities for investors seeking stability and growth. In this context, dividend stocks stand out as attractive options, offering potential income streams that can enhance portfolio resilience amidst fluctuating market conditions.

Top 10 Dividend Stocks In Asia

Click here to see the full list of 1046 stocks from our Top Asian Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

EM Systems (TSE:4820)

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

Overview: EM Systems Co., Ltd. develops and sells IT systems for pharmacies, clinics, and care/welfare businesses in Japan, with a market cap of ¥55.59 billion.

Operations: EM Systems Co., Ltd.'s revenue is primarily derived from its Dispensing System Business at ¥21.57 billion, followed by the Medical System Business at ¥2.86 billion, and the Nursing/Welfare System Business at ¥549 million.

Dividend Yield: 4.4%

EM Systems recently increased its dividend to ¥17.00 per share, up from ¥9.00 a year ago, indicating a commitment to returning value to shareholders. The dividend yield of 4.36% places it among the top 25% of payers in Japan, although it's not fully covered by earnings due to a high payout ratio of 98.3%. Despite this, dividends have been stable and growing over the past decade, supported by adequate cash flow coverage at 55.7%.

• Click here to discover the nuances of EM Systems with our detailed analytical dividend report.
• Our valuation report unveils the possibility EM Systems' shares may be trading at a discount.

Marubun (TSE:7537)

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

Overview: Marubun Corporation distributes electronics products both in Japan and internationally, with a market cap of ¥30.93 billion.

Operations: Marubun Corporation's revenue is primarily derived from its Electronic Device Business at ¥149.07 billion and its Electronic System Business at ¥59.38 billion, with additional contributions from the Entrepreneur Business segment totaling ¥2.46 billion.

Dividend Yield: 4.2%

Marubun Corporation's dividend yield of 4.23% ranks it in the top 25% of Japanese dividend payers, supported by a low cash payout ratio of 7.7%, ensuring strong coverage by cash flows. However, its dividends have been volatile over the past decade, with an unstable track record despite being well covered by earnings at a payout ratio of 39.2%. A recent partnership with Wi-Charge aims to enhance Marubun's strategic market presence in Asia.

• Unlock comprehensive insights into our analysis of Marubun stock in this dividend report.
• According our valuation report, there's an indication that Marubun's share price might be on the cheaper side.

Zippy Technology (TWSE:2420)

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

Overview: Zippy Technology Corp. designs, manufactures, and trades micro switches and power supplies across Taiwan, the United States, Mainland China, Germany, Italy and internationally with a market cap of NT$7.83 billion.

Operations: Zippy Technology Corp.'s revenue is primarily derived from its Switch Business Unit, generating NT$1.93 billion, and its Power Business Unit, contributing NT$1.44 billion.

Dividend Yield: 6.8%

Zippy Technology offers a dividend yield of 6.82%, placing it in the top 25% of Taiwan's dividend payers, yet its high payout ratio of 92.7% indicates dividends are not well covered by earnings. Despite past volatility and unreliability, dividends have grown over the last decade and are adequately supported by cash flows with a cash payout ratio of 72.1%. Recent earnings showed sales growth but declining net income, impacting overall financial stability.

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

Key Takeaways

• Embark on your investment journey to our 1046 Top Asian Dividend Stocks selection here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

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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