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Top 3 Dividend Stocks to Improve Your Portfolio

Umito November 20, 2024

In a week marked by busy earnings releases and mixed economic signals, global markets performed mixed, with major U.S. indexes like the Nasdaq Composite and the S&P MidCap 400 hitting record highs only to decline sharply. In this context of fluctuating market conditions, dividend stocks offer an attractive opportunity for investors seeking stability and income in their portfolios. A good dividend stock typically combines a consistent payout history with strong fundamentals, making it an attractive option during times of economic uncertainty.

Name	Dividend yield	Dividend rating
Guarantee Trust Holding (NGSE:GTCO)	6.72%	★★★★★★
Peoples Bancorp (NasdaqGS:PEBO)	5.29%	★★★★★★
Financial Institutions (NasdaqGS:FISI)	4.96%	★★★★★★
Showa-Ota Business Mastermind (TSE: 9658)	4.21%	★★★★★★
Premier Financial (NasdaqGS:PFC)	5.10%	★★★★★★
Kwong Lung Company (TPEX: 8916)	6.32%	★★★★★★
Citizens and the North (NasdaqCM:CZNC)	5.94%	★★★★★★
James Latham (TARGET: LTHM)	5.83%	★★★★★★
Gakkyusha Ltd (TSE: 9769)	4.64%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	5.03%	★★★★★★

Click here to see the full list of 2023 stocks from our pick of the highest dividend stocks.

Here’s a look at some of the screener’s choices.

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

Preview: China Hongqiao Group Limited is an investment holding company that manufactures and sells aluminum products in the People’s Republic of China and Indonesia, with a market capitalization of approximately HK$124.13 billion.

Operations: The company generates revenue mainly from its manufacturing and sales of aluminum products, totaling CN¥141.48 billion.

Dividend yield: 8.5%

China Hongqiao Group’s dividend yield of 8.5% ranks among the highest 25% in Hong Kong, supported by a low payout ratio of 42.3%, indicating coverage by earnings and flows cash flow. However, its dividend history is volatile, with past instability despite recent increases. The stock is trading at a significant discount to its estimated fair value and is showing strong earnings growth, as indicated by net profit of CNY 9.15 billion for the first half of 2024, up from 2.46 billion CNY over one year.

SEHK: 1,378 Dividend History in November 2024

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

Preview: KCE Electronics Public Company Limited, together with its subsidiaries, manufactures and distributes electrical printed circuit boards (PCBs) worldwide under the KCE brand, with a market capitalization of THB 41.37 billion.

Operations: KCE Electronics mainly generates revenue from its printed circuit business (THB 17.94 billion), followed by the prepregs and laminates business (THB 3.31 billion) and chemical business (THB 941.0 billion). 29 million THB).

Dividend yield: 3.6%

KCE Electronics’ dividend yield of 3.59% is modest compared to major Thai payers, but dividends are covered by earnings (71.6% payout ratio) and cash flow (payout ratio in cash by 39.3%). Despite past volatility, recent earnings growth and a dividend of THB 0.60 per share for early 2024 reflect improved stability. The stock’s price-to-earnings ratio of 19.9x is below the industry average, suggesting a reasonable valuation amid expectations for continued earnings growth.

SET: KCE dividend history in November 2024

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

Preview: Canny Elevator Co., Ltd. focuses on the research, development, production, sales, installation and maintenance of elevators in China and has a market capitalization of 5.13 billion CN yen.

Operations: Canny Elevator Co., Ltd. generates revenue from the research, development, production, sales, installation and maintenance of elevators in China.

Dividend yield: 5.2%

Canny Elevator’s dividend yield of 5.2% ranks in the top 25% of Chinese payers but is not well covered by profits, with a high payout ratio of 94.3%. Cash flow coverage is more reasonable at 54.5%, although dividends have been volatile and unreliable over the past decade. Recent earnings have declined, with net profit falling to CNY281.71 million for the nine months ending September 2024, suggesting potential challenges in maintaining dividends without improved profitability or revenue growth.

SZSE: 002367 Dividend history in November 2024

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account 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 SEHK:1378 SET:KCE and SZSE:002367.

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