In a week marked by cautious commentary from the Federal Reserve and political uncertainty over a potential government shutdown, global markets have experienced notable volatility. Despite these challenges, dividend stocks continue to attract investors seeking steady income streams and potential resilience during turbulent times. A good dividend stock in such an environment is one that not only offers reliable payouts but also demonstrates financial stability and the ability to weather economic fluctuations.
We’ll examine a selection from our screener results.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Daicel Corporation operates in the materials, medical/healthcare, smart, safety, and engineering plastics sectors across Japan, China, and internationally with a market cap of ¥371.92 billion.
Operations: Daicel Corporation’s revenue is primarily derived from its Engineering Plastics Business at ¥242.85 billion, followed by the Material Business at ¥195.47 billion, Safety Business at ¥95.51 billion, Smart Business at ¥35.82 billion, and Medical/Healthcare sector contributing ¥14.24 billion.
Dividend Yield: 4.3%
Daicel has announced a share buyback program and increased its interim and year-end dividends, reflecting a focus on shareholder returns despite recent earnings guidance revisions. The company aims for a total return ratio of over 40%, combining dividends and buybacks, with a new target DOE ratio of 4% or more. While dividends have been stable over the past decade, they are not covered by free cash flows, though the payout ratio remains low at 26.3%.
TSE:4202 Dividend History as at Dec 2024
Simply Wall St Dividend Rating: ★★★★★★
Overview: Aiphone Co., Ltd. manufactures and sells telecommunication equipment under the AIPHONE brand for various sectors including housing, healthcare, and business globally, with a market cap of ¥44.34 billion.
Operations: Aiphone Co., Ltd.’s revenue is primarily derived from Japan (¥55.62 billion), with additional contributions from North America (¥11.53 billion), Thailand (¥9.44 billion), Vietnam (¥6.67 billion), Europe (¥4.39 billion), and other regions (¥1.51 billion).
Dividend Yield: 4.7%
Aiphone Ltd. offers a compelling dividend profile with a yield of 4.75%, placing it in the top 25% of Japanese market payers. The company’s dividends have been stable and growing over the past decade, supported by a reasonable payout ratio of 57.5%. This coverage is reinforced by strong cash flow management, as indicated by a cash payout ratio of just 35.4%. Additionally, Aiphone’s stock trades at approximately 12.8% below its estimated fair value, enhancing its attractiveness for dividend-focused investors amidst projected earnings growth of 4.07% annually.
TSE:6718 Dividend History as at Dec 2024
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: T3EX Global Holdings Corp. is an investment holding company that offers integrated logistics services across Taiwan, Hong Kong, China, East Asia, and internationally with a market cap of NT$10.86 billion.
Operations: T3EX Global Holdings Corp. generates revenue primarily from Sea Freight/Transportation at NT$14.79 billion and Air Freight/Transportation at NT$5.15 billion.
Dividend Yield: 8.2%
T3EX Global Holdings offers a high dividend yield of 8.17%, ranking in the top 25% of the Taiwanese market, but its sustainability is questionable due to insufficient free cash flow coverage and volatile payments over the past decade. Despite a low price-to-earnings ratio of 9.8x, recent leadership changes and declining net profit margins from 9.7% to 4.8% could impact future stability, although dividends have increased over ten years.
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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 TSE:4202 TSE:6718 and TWSE:2636.
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