Steer Clear Of {avoid_company} With {hold_companies_count} Stronger Dividend Stock Alternative
Dividend-paying stocks are popular among investors seeking a reliable income source. However, it is important to be cautious when a company’s payout ratio becomes too high, as this could indicate that its dividends may not be sustainable in the long run. In this article, we will examine two dividend stocks: one that looks like a promising investment and another that may have risks due to its high payout ratio.
Top 10 Dividend Stocks:
1. Allianz (XTRA:ALV) – Dividend Yield: 5.26%, Dividend Rating: ★★★★★★
2. Guaranty Trust Holding (NGSE:GTCO) – Dividend Yield: 7.09%, Dividend Rating: ★★★★★★
3. Globeride (TSE:7990) – Dividend Yield: 3.77%, Dividend Rating: ★★★★★★
4. HITO-Communications HoldingsInc (TSE:4433) – Dividend Yield: 3.43%, Dividend Rating: ★★★★★★
5. FALCO HOLDINGS (TSE:4671) – Dividend Yield: 6.61%, Dividend Rating: ★★★★★★
6. Kwong Lung Enterprise (TPEX:8916) – Dividend Yield: 5.83%, Dividend Rating: ★★★★★★
7. Banque Cantonale Vaudoise (SWX:BCVN) – Dividend Yield: 4.46%, Dividend Rating: ★★★★★★
8. James Latham (AIM:LTHM) – Dividend Yield: 6.35%, Dividend Rating: ★★★★★★
9. GakkyushaLtd (TSE:9769) – Dividend Yield: 4.07%, Dividend Rating: ★★★★★★
10. DoshishaLtd (TSE:7483) – Dividend Yield: 3.42%, Dividend Rating: ★★★★★★
Let’s now focus on one of the top picks from the list and another that may need a second thought.
Top Pick:
United Capital (NGSE:UCAP)
– Simply Wall St Dividend Rating: ★★★★☆☆
– Overview: United Capital Plc operates in Nigeria, offering various financial services with a market capitalization of approximately NGN 169.80 billion.
– Dividend Yield: 6.4%
– Financial Performance: United Capital Plc has shown strong financial growth with increased revenue and net income in Q1 2024. Despite a history of inconsistent dividends, UCAP maintains a sustainable dividend policy with reasonable payout ratios.
One To Reconsider:
V.F (NYSE:VFC)
– Simply Wall St Dividend Rating: ★★☆☆☆☆
– Overview: V.F. Corporation deals in branded lifestyle apparel globally with a market cap of around $5.25 billion.
– Dividend Yield: 2.8%
– Concerns: V.F. Corporation’s high dividend payout ratio raises doubts about the sustainability of its dividends, especially considering recent financial instability and net losses.
In conclusion, when considering dividend stocks, it is essential to assess the company’s financial health and payout ratios to make informed investment decisions. Remember to conduct thorough research and seek professional advice if needed before making any investment choices.