Utechzone And Two Other Reliable Dividend Stocks To Consider

Amidst a backdrop of fluctuating global markets, where the Nasdaq hits new highs and the Dow Jones experiences significant dips, investors might find solace in dividend stocks known for their potential stability and steady returns. In light of current market dynamics, selecting reliable dividend stocks can be a prudent strategy to navigate through economic uncertainties and capitalize on opportunities for consistent income.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Yamato Kogyo (TSE:5444)	3.69%	★★★★★★
Guaranty Trust Holding (NGSE:GTCO)	8.58%	★★★★★★
Allianz (XTRA:ALV)	5.21%	★★★★★★
Globeride (TSE:7990)	4.02%	★★★★★★
Sonae SGPS (ENXTLS:SON)	5.80%	★★★★★★
HITO-Communications HoldingsInc (TSE:4433)	3.48%	★★★★★★
Ryoyu Systems (TSE:4685)	3.45%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.63%	★★★★★★
FALCO HOLDINGS (TSE:4671)	3.49%	★★★★★★
Innotech (TSE:9880)	4.03%	★★★★★★

Click here to see the full list of 1895 stocks from our Top Dividend Stocks screener.

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

Utechzone (TPEX:3455)

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

Overview: Utechzone Co., Ltd. is a company based in Taiwan that focuses on researching, developing, manufacturing, and selling automatic optical inspection products, with a market capitalization of approximately NT$6.55 billion.

Operations: Utechzone Co., Ltd. generates its revenue primarily from the research, development, manufacture, and sale of automatic optical inspection products in Taiwan.

Dividend Yield: 4.6%

Utechzone Co., Ltd. has demonstrated a notable recovery in Q1 2024, with sales of TWD 331.68 million and net income rising to TWD 41.84 million from TWD 19.26 million year-over-year, suggesting improved profitability. However, the company's dividend reliability is questionable due to its history of volatile payments over the past eight years, despite a cash payout ratio of 74.2% indicating current dividends are supported by cash flow. The price-to-earnings ratio at 19.5x remains attractive compared to the broader Taiwan market average of 22.3x, but investors should be cautious given Utechzone's unstable dividend track record and significant earnings drop in FY2023 with net income falling to TWD 314.23 million from TWD 750.85 million previously.

• Take a closer look at Utechzone's potential here in our dividend report.
• The analysis detailed in our Utechzone valuation report hints at an inflated share price compared to its estimated value.

Sunmax Biotechnology (TPEX:4728)

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

Overview: Sunmax Biotechnology Co., Ltd. is a Taiwanese biomedical company that specializes in developing, manufacturing, and marketing collagen-based medical devices, primarily serving markets in Taiwan and Mainland China, with a market capitalization of approximately NT$15.03 billion.

Operations: Sunmax Biotechnology Co., Ltd. generates its revenues by focusing on the development, production, and sale of collagen-based medical devices across Taiwan and Mainland China.

Dividend Yield: 3.4%

Sunmax Biotechnology Co., Ltd. has shown robust financial growth with a 27.4% increase in earnings over the past year, reporting TWD 1.69 billion in sales for FY2023 and a net income rise to TWD 625.71 million from TWD 533.83 million previously. Despite its low price-to-earnings ratio of 22.3x compared to the industry average of 42x, indicating good value, the company's dividend history is marked by inconsistency and volatility over the last decade, making its dividends less reliable for investors seeking stable returns. The dividend coverage is adequate with an earnings payout ratio of 88.9% and cash payout ratio at 76.1%, but its yield at 3.44% remains below the top quartile in Taiwan's market.

• Click here and access our complete dividend analysis report to understand the dynamics of Sunmax Biotechnology.
• According our valuation report, there's an indication that Sunmax Biotechnology's share price might be on the expensive side.

Syscom Computer Engineering (TWSE:2453)

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

Overview: Syscom Computer Engineering Co., operating globally, specializes in information technology services with a market capitalization of NT$6.73 billion.

Operations: Syscom Computer Engineering Co. offers a range of information technology services across the globe.

Dividend Yield: 3.5%

Syscom Computer Engineering reported a modest increase in quarterly earnings with TWD 85.67 million net income, up from TWD 84.43 million year-over-year. Annual dividends were set at TWD 2.4 per share, totaling TWD 240 million distributed to shareholders. Despite the dividend growth over the past decade, Syscom's dividend yield of 3.48% trails behind Taiwan's top quartile average of 4.37%. The company maintains a high payout ratio at 85.7%, supported by both earnings and cash flows (Cash Payout Ratio: 78%), yet its dividend history shows volatility and unreliability over the past ten years, posing concerns for those seeking dependable income streams.

• Unlock comprehensive insights into our analysis of Syscom Computer Engineering stock in this dividend report.
• Our valuation report here indicates Syscom Computer Engineering may be overvalued.

Key Takeaways

• Access the full spectrum of 1895 Top Dividend Stocks by clicking on this link.
• 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.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Curious About Other Options?

• 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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