3 Dividend Stocks To Consider For Your Portfolio

Dividend Yield: 4.1%

Daido Steel’s dividend yield of 4.14% is attractive, ranking in the top 25% of JP market payers, yet its dividends have been volatile and not covered by cash flows despite a low payout ratio of 32.1%. Trading at 54.7% below fair value and with earnings forecast to grow, it offers good relative value. Recent share buybacks aim to enhance capital efficiency and shareholder returns amidst fluctuating dividend stability.

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

Overview: Nichicon Corporation, with a market cap of ¥71.49 billion, manufactures and sells capacitors and circuit products for electric and electronic products across Japan, the United States, Europe, Asia, and internationally.

Operations: Nichicon Corporation generates revenue from the manufacturing and sale of capacitors and circuit products for electric and electronic applications across various global markets, including Japan, the United States, Europe, and Asia.

Dividend Yield: 3.3%

Nichicon’s dividend yield of 3.25% falls short of the top 25% in Japan, and its high cash payout ratio (353%) indicates dividends are not well covered by cash flows. Despite this, dividends have been stable and growing over the past decade with a low payout ratio (18.6%), suggesting coverage by earnings. Trading at 41.6% below estimated fair value, Nichicon presents good relative value despite recent declines in profit margins from 5.8% to 3.6%.

• Click here to access our complete index of 1958 Top Dividend Stocks.

• Have you diversified into these companies? Leverage the power of Simply Wall St’s portfolio to keep a close eye on market movements affecting your investments.

• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

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 TSE:2768 TSE:5471 and TSE:6996.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]