Top Dividend Stocks To Consider In January 2025

As we enter January 2025, global markets are experiencing a notable upswing, buoyed by easing core inflation in the U.S. and strong earnings from major banks. This positive momentum has been reflected in the performance of key indices like the S&P 500 and Dow Jones Industrial Average, which have posted significant gains. In this environment, dividend stocks can offer investors a blend of income generation and potential for capital appreciation, making them an attractive option for those looking to navigate current market conditions with stability and growth potential in mind.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.34%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.50%	★★★★★★
CAC Holdings (TSE:4725)	4.69%	★★★★★★
Yamato Kogyo (TSE:5444)	4.04%	★★★★★★
GakkyushaLtd (TSE:9769)	4.46%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.18%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.49%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.59%	★★★★★★
Nihon Parkerizing (TSE:4095)	4.02%	★★★★★★
E J Holdings (TSE:2153)	4.05%	★★★★★★

Click here to see the full list of 1983 stocks from our Top Dividend Stocks screener.

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

Golden House (TASE:GOHO)

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

Overview: Golden House Ltd operates and manages sheltered housing centers for the elderly in Israel, with a market cap of ₪358.28 million.

Operations: Golden House Ltd generates its revenue from the operation and management of sheltered housing centers for the elderly in Israel.

Dividend Yield: 5.6%

Golden House's dividend payments are well covered by earnings with a payout ratio of 39.1% and cash flows at a 77.3% cash payout ratio, despite past volatility and unreliability in dividends over the last decade. Recent earnings results show significant improvement, with net income reaching ILS 109.02 million for Q3 2024 compared to a net loss previously, supporting dividend sustainability. However, its dividend yield of 5.59% is slightly below the top tier in Israel's market (5.73%).

• Get an in-depth perspective on Golden House's performance by reading our dividend report here.
• The analysis detailed in our Golden House valuation report hints at an deflated share price compared to its estimated value.

Pacific Industrial (TSE:7250)

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

Overview: Pacific Industrial Co., Ltd. manufactures and sells automotive and electronic equipment parts in Japan and internationally, with a market cap of ¥76.49 billion.

Operations: Pacific Industrial Co., Ltd.'s revenue is primarily derived from its Valve Products Business, contributing ¥57.05 billion, and its Press and Resin Products Business, generating ¥146.96 billion.

Dividend Yield: 3.9%

Pacific Industrial's dividend payments, while covered by a low payout ratio of 21.3%, have been unreliable and volatile over the past decade. Despite a recent earnings growth of 16.3%, future forecasts indicate an average decline of 5.7% annually for the next three years, raising concerns about sustainability as dividends are not supported by free cash flows. The stock offers a competitive yield in Japan's market and is trading at good relative value compared to peers and industry benchmarks.

• Dive into the specifics of Pacific Industrial here with our thorough dividend report.
• In light of our recent valuation report, it seems possible that Pacific Industrial is trading behind its estimated value.

Lumax International (TWSE:6192)

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

Overview: Lumax International Corp., Ltd. operates in Taiwan and China, offering electronic components and program-controlled instruments, with a market cap of NT$10.14 billion.

Operations: Lumax International Corp., Ltd.'s revenue segments include Electronics Component (NT$555.50 million), Program-Controlled System (NT$1.92 billion), Program-Controlled Instrument (NT$2.81 billion), Other Program Control Business (NT$1.76 billion), and Communication and Linear Transmission System (NT$563.41 million).

Dividend Yield: 4.7%

Lumax International's dividends are covered by both earnings (57.2% payout ratio) and cash flows (60% cash payout ratio), indicating sustainability. However, the dividend history has been volatile and unreliable over the past decade despite a 4.74% yield, which is competitive in Taiwan's market. Recent financials show increased sales but a slight decline in quarterly net income year-over-year, suggesting potential challenges in maintaining consistent dividend growth despite overall positive nine-month results.

• Take a closer look at Lumax International's potential here in our dividend report.
• Our expertly prepared valuation report Lumax International implies its share price may be lower than expected.

Key Takeaways

• Click through to start exploring the rest of the 1980 Top Dividend Stocks now.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

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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