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3 Trustworthy Dividend Stocks Providing Yields of Up to 8.9%

Photo credit: finance.yahoo.com

Recent global market dynamics, particularly a robust surge in U.S. stock prices fueled by hopes of economic progression and tax reforms, have led investors to closely evaluate their investment strategies. In this climate, dividend stocks are increasingly appealing to those prioritizing consistent income, as they can offer reliable returns that mitigate some of the risks associated with market fluctuations.

Name

Dividend Yield

Dividend Rating

Peoples Bancorp (NasdaqGS:PEBO)

4.53%

★★★★★★

Tsubakimoto Chain (TSE:6371)

4.18%

★★★★★★

Gakkyusha Ltd (TSE:9769)

4.54%

★★★★★★

Financial Institutions (NasdaqGS:FISI)

4.42%

★★★★★★

FALCO HOLDINGS (TSE:4671)

6.78%

★★★★★★

E J Holdings (TSE:2153)

3.86%

★★★★★★

James Latham (AIM:LTHM)

6.13%

★★★★★★

Premier Financial (NasdaqGS:PFC)

4.38%

★★★★★★

Citizens & Northern (NasdaqCM:CZNC)

5.44%

★★★★★★

Banque Cantonale Vaudoise (SWX:BCVN)

4.90%

★★★★★★

Click here to see the full list of 1939 stocks from our Top Dividend Stocks screener.

Next, we will examine some top selections identified through our screening tool.

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

Overview: A2A S.p.A., based in Italy, engages in the production, sale, and distribution of gas and electricity, as well as district heating across domestic and international markets. The company boasts a market capitalization of €6.29 billion.

Operations: A2A S.p.A. generates revenue from several segments: Market (€6.48 billion), Corporate (€331 million), Environment (€1.47 billion), Smart Infrastructures (€1.47 billion), and Generation and Trading (€8.61 billion).

Dividend Yield: 4.6%

The company has maintained stable and increasing dividend payouts over the last decade, backed by a manageable payout ratio of 34.6%. However, there are concerns about the sustainability of its dividends due to a high cash payout ratio of 366%, suggesting that free cash flows may not fully support these payments. While its P/E ratio of 7.5x is favorable compared to the broader Italian market, A2A faces headwinds in the form of elevated debt levels and projected declines in earnings.

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

Overview: Stolt-Nielsen Limited offers extensive global solutions for transporting, storing, and distributing bulk liquid chemicals and specialty liquids. The company’s market cap stands at NOK16.19 billion.

Operations: The revenue breakdown for Stolt-Nielsen Limited comprises segments such as Terminals ($306.89 million), Stolt Sea Farm ($122.79 million), and Tank Containers ($640.04 million).

Dividend Yield: 8.9%

Stolt-Nielsen’s dividend yield is noteworthy, placing it in the top quartile among Norwegian companies. The company declared a recent interim dividend of $1.25 per share. While its historical dividend payouts have experienced fluctuations, they are well supported by earnings and cash flows with payout ratios of 20% and 38.2%, respectively. More recently, earnings have grown considerably, though expectations indicate a potential annual decline of 6.1% over the next three years. Despite trading at a discounted value relative to its fair value, the company is burdened with significant debt.

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

Overview: TX Group AG operates various platforms focused on information, orientation, entertainment, and support services in Switzerland, and it has a market capitalization of CHF1.60 billion.

Operations: TX Group’s revenue streams include segments such as Tamedia with CHF427 million, Goldbach with CHF299.10 million, 20 Minutes with CHF115.60 million, TX Markets with CHF126.40 million, and Groups & Ventures contributing CHF159.40 million.

Dividend Yield: 4%

While TX Group has seen its dividend payments grow over the last decade, these payouts have been marked by volatility. The dividends are, however, sufficiently backed by earnings and cash flows, which reflect payout ratios of 59.6% and 43.4%, respectively. Although its yield is relatively modest compared to leading Swiss dividend payers, TXGN is trading significantly below its estimated fair value, benefiting from improved profitability and inclusion in the S&P Global BMI Index in September 2024.

Dive deeper into all 1939 Top Dividend Stocks by utilizing our screener tool.

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This article is meant to inform on investment opportunities and is based on historical data and analytical forecasts using an impartial approach. It is not intended as financial advice and should not be construed as a recommendation for any specific stock purchase or sale, particularly without considering individual goals and financial circumstances. Our focus is on long-term analysis driven by fundamental data, with acknowledgement that recent price-sensitive events may not be fully incorporated in our assessments. Simply Wall St holds no positions in any stocks mentioned.

Companies mentioned in this article include BIT:A2A, OB:SNI, and SWX:TXGN.

Your thoughts on this piece? If you have any concerns regarding the content, reach out to us directly. Alternatively, you can contact us via email at editorial-team@simplywallst.com.

Source
finance.yahoo.com

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