Asian Dividend Stocks To Consider For Your Portfolio

As global markets grapple with economic uncertainties, including trade tensions and inflationary pressures, investors are increasingly looking towards Asia for opportunities that offer both growth and stability. In this environment, dividend stocks in Asia can provide a reliable income stream while potentially benefiting from the region’s dynamic economic landscape.

Click here to see the full list of 1154 stocks from our Top Asian Dividend Stocks screener.

Let’s review some notable picks from our screened stocks.

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

Overview: OAT Agrio Co., Ltd. is involved in the research, development, manufacture, and sale of agrochemicals and fertilizers in Japan with a market cap of ¥20.34 billion.

Operations: OAT Agrio Co., Ltd. generates revenue primarily through its Agritech Business segment, which accounted for ¥29.77 billion.

Dividend Yield: 3%

OAT Agrio offers a reliable dividend track record with stable and growing payments over the past decade. Its dividends are well-covered by earnings, with a payout ratio of 27.3%, and cash flows, with a cash payout ratio of 19%. While the dividend yield is lower than Japan’s top quartile at 3%, it remains attractive due to its stability. Recent share buybacks totaling ¥252.41 million may further enhance shareholder value.

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

Overview: Teikoku Electric Mfg. Co., Ltd. is involved in the manufacture and sale of electrical equipment and general machinery, with a market cap of ¥50.66 billion.

Operations: Teikoku Electric Mfg. Co., Ltd.’s revenue is primarily derived from its Pump Business, generating ¥28.10 billion, and its Electronic Components Business, contributing ¥1.38 billion.

Dividend Yield: 3.1%

Teikoku Electric Mfg. Co., Ltd.’s dividends are covered by earnings and cash flows, with payout ratios of 55.4% and 65.3%, respectively, but have been volatile over the past decade. The dividend yield of 3.15% is below Japan’s top quartile, yet payments have increased over ten years despite instability. Trading at a discount to fair value, recent share buybacks totaling ¥2.48 billion could support shareholder returns amidst declining profit margins from last year’s 13.8% to 9.3%.

Story Continues

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

Overview: Nippon Seiki Co., Ltd. manufactures and sells instruments for vehicles and machinery across various regions, including Japan, the Americas, Europe, and Asia, with a market cap of ¥63.78 billion.

Operations: Nippon Seiki Co., Ltd.’s revenue segments include ¥25.21 billion from the Automotive Parts Business, ¥26.63 million from Automotive Sales, and ¥10.75 million from the Resin Compound Business.

Dividend Yield: 4.5%

Nippon Seiki’s dividend yield of 4.5% ranks in the top quartile of Japan’s market, but it’s not well supported by free cash flows, raising sustainability concerns. Despite this, dividends have been stable and growing over the past decade with an 88.2% payout ratio covered by earnings. However, profit margins have declined from 2.2% to 1.1%, which might impact future payouts if not improved despite forecasts for significant earnings growth ahead.

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:4979 TSE:6333 and TSE:7287.

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