3 Reliable Dividend Stocks With Yields Up To 5.1%

As global markets face headwinds from rising U.S. Treasury yields and tepid economic growth, investors are increasingly looking for stability in their portfolios. In such an environment, dividend stocks can offer a reliable income stream, especially those with solid fundamentals and attractive yields up to 5.1%.

Click here to see the full list of 2016 stocks from our Top Dividend Stocks screener.

Let’s dive into some prime choices out of the screener.

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

Overview: Jiangsu Linyang Energy Co., Ltd. manufactures and supplies energy meters, system products, and accessories both in China and internationally, with a market cap of CN¥14.82 billion.

Operations: Jiangsu Linyang Energy Co., Ltd. generates revenue primarily from the sale of energy meters and system products and accessories, serving both domestic and international markets.

Dividend Yield: 4.1%

Jiangsu Linyang Energy’s dividend yield of 4.11% places it in the top 25% of CN market payers, yet its dividends have been unreliable and volatile over the past decade. While earnings cover dividend payments with a payout ratio of 56.1%, high cash payout ratio (390.9%) indicates unsustainable cash flow coverage. Despite solid earnings growth and a favorable price-to-earnings ratio at 13.8x, investors should be cautious about dividend stability and sustainability concerns.

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

Overview: Nachi-Fujikoshi Corp. is a machinery manufacturer with operations in Japan, the rest of Asia, China, the Americas, and Europe, and it has a market cap of ¥73.49 billion.

Operations: Nachi-Fujikoshi Corp. generates revenue from its machinery manufacturing operations across various regions, including Japan, the rest of Asia, China, the Americas, and Europe.

Dividend Yield: 3.1%

Nachi-Fujikoshi’s dividend payments are supported by a low cash payout ratio of 31.5%, indicating strong coverage by free cash flow, though the earnings payout ratio is higher at 87%. Despite a history of volatility in its dividends over the past decade, there has been some growth. Recent share buybacks totaling ¥172.33 million suggest efforts to manage capital flexibly amidst business changes, but profit margins have declined from the previous year, potentially impacting future payouts.

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

Overview: Alltek Technology Corporation is a communication components distributor and solution provider operating in Taiwan, China, and internationally, with a market cap of NT$9.39 billion.

Operations: Alltek Technology Corporation’s revenue segments include NT$29.39 billion from Alltek Technology Corp., NT$0.95 billion from Gaosen Technology, Inc., and NT$18.89 billion from Alltek Group Corp and Alltek Technology (H.K.) Limited.

Dividend Yield: 5.2%

Alltek Technology’s dividend yield of 5.2% ranks in the top 25% of Taiwan’s market, though its dividend history has been volatile over the past decade. Despite this, dividends are well-covered by earnings and cash flows with a payout ratio of 72.3% and a cash payout ratio of 22.9%. Recent earnings improvements show net income growth, yet sales have declined year-on-year, which could affect future stability in payouts.

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 SHSE:601222 TSE:6474 and TWSE:3209.

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