As global markets navigate a mixed start to the new year, with major indices like the S&P 500 and Nasdaq Composite reflecting strong annual gains despite recent volatility, investors are increasingly seeking stability amidst economic uncertainties such as fluctuating PMI figures and revised GDP forecasts. In this environment, dividend stocks can offer a compelling option for those looking to balance growth potential with income generation, making Romande Energie Holding and two other top dividend stocks worthy considerations for your portfolio.
Let’s explore several standout options from the results in the screener.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Romande Energie Holding SA operates in Switzerland, focusing on the production, distribution, and marketing of electrical and thermal energy, with a market cap of CHF1.17 billion.
Operations: Romande Energie Holding SA generates revenue through its segments: Grids (CHF318.28 million), Corporate (CHF59.89 million), Energy Solutions (CHF486.76 million), and Romande Energie Services (CHF157.72 million).
Dividend Yield: 3.2%
Romande Energie Holding offers stable and reliable dividends, having consistently increased payouts over the past decade. However, its 3.16% yield is lower than the top Swiss dividend payers and is not supported by free cash flows, raising sustainability concerns. Despite this, the low payout ratio of 23.5% suggests earnings coverage remains strong. Trading at a price-to-earnings ratio of 7.4x indicates good relative value compared to peers in the Swiss market (21x).
SWX:REHN Dividend History as at Jan 2025
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Hisense Home Appliances Group Co., Ltd. manufactures and sells household electrical appliances under various brands both in China and internationally, with a market cap of approximately CN¥39.89 billion.
Operations: Hisense Home Appliances Group Co., Ltd. generates revenue through the production and distribution of household electrical appliances under brands such as Hisense, Ronshen, Kelon, Hitachi, gorenge, ASKO, and York across domestic and international markets.
Dividend Yield: 3.2%
Hisense Home Appliances Group offers a dividend yield in the top 25% of the Chinese market, supported by strong earnings and cash flow coverage with payout ratios of 43.1% and 24.3%, respectively. However, its dividend history is less stable, showing volatility over nine years. Recent earnings growth supports its financial health, but investors should note potential impacts from strategic changes like executive shifts and possible investments in India through Epack Manufacturing Technologies.
SZSE:000921 Dividend History as at Jan 2025
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Strabag SE is a global construction company with a market cap of €4.88 billion.
Operations: Strabag SE generates its revenue primarily from three segments: North + West (€7.30 billion), South + East (€7.53 billion), and International + Special Divisions (€2.88 billion).
Dividend Yield: 5.3%
Strabag’s dividend payments, while covered by earnings and cash flows with payout ratios of 35.4% and 39%, have been volatile over the past decade. Although trading at a significant discount to its estimated fair value, shareholders experienced dilution last year. Despite recent earnings growth of 28%, future earnings are expected to decline by an average of 4.7% annually over the next three years, impacting the sustainability of its dividend yield compared to market peers.
WBAG:STR Dividend History as at Jan 2025
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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.
Companies discussed in this article include SWX:REHN SZSE:000921 and WBAG:STR.
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