In a week marked by cautious Federal Reserve commentary and looming political uncertainties, global markets have experienced significant fluctuations, with U.S. stocks facing broad-based declines despite a late-week rally. As investors navigate these turbulent conditions, dividend stocks can offer stability and income potential, making them an attractive option for enhancing portfolios in uncertain economic times.
Let’s review some notable picks from our screened stocks.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Lanner Electronics Inc. manufactures and sells Internet and communication equipment across the United States, Europe, China, Israel, Canada, and internationally with a market cap of NT$13.12 billion.
Operations: Lanner Electronics Inc. generates revenue of NT$7.51 billion from its manufacturing and sales of network communication equipment segment.
Dividend Yield: 4.6%
Lanner Electronics offers a dividend yield of 4.59%, placing it in the top 25% of dividend payers in Taiwan, but its payments have been volatile over the past decade. Although dividends are covered by earnings with a payout ratio of 74.3%, they are not well-supported by free cash flows due to a high cash payout ratio of 98.5%. Recent earnings show stable net income despite increased sales, which may impact future dividend reliability.
TPEX:6245 Dividend History as at Dec 2024
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Sanyo Trading Co., Ltd. operates in the rubber, chemical, green technology, industrial products, and life science sectors both in Japan and internationally with a market cap of ¥45.27 billion.
Operations: Sanyo Trading Co., Ltd.’s revenue is primarily derived from Chemical Products at ¥46.67 billion, Overseas Subsidiary operations contributing ¥37.30 billion, and Mechanical Materials generating ¥54.19 billion.
Dividend Yield: 3.6%
Sanyo Trading’s dividends have been stable and growing over the past decade, supported by a low payout ratio of 30.4% and a cash payout ratio of 34.6%, indicating strong coverage by earnings and cash flows. Although its dividend yield of 3.59% is slightly below the top tier in Japan, it remains reliable. The stock trades at good value, significantly below its estimated fair value, enhancing its appeal for dividend investors seeking stability.
TSE:3176 Dividend History as at Dec 2024
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Trade-Van Information Services Co. offers custom clearance automation and value-added services in Taiwan, with a market cap of NT$12.56 billion.
Operations: Trade-Van Information Services Co. generates revenue from Electronic Data Exchange Services and its Peripheral Services, amounting to NT$2.49 billion.
Dividend Yield: 3.2%
Trade-Van Information Services offers a reliable dividend that has grown steadily over the past decade, supported by stable earnings growth and coverage with an 84.3% payout ratio and an 88.3% cash payout ratio. Despite its yield of 3.15% being lower than Taiwan’s top tier, recent earnings improvements, including a rise in net income to TWD 150.5 million for Q3, underscore its capacity to maintain dividends amidst solid financial performance.
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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 TPEX:6245 TSE:3176 and TWSE:6183.
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