The Top 10 Global Dividend Stocks to Kick Off Your Portfolio in 2023
The Fintel research platform has highlighted these ten Global stocks that look attractive in the current market based on their respective dividend scores.
The platform’s dividend score combines both a company’s dividend yield and growth to generate a score out of 100 based on its ranking against peer companies on the screen. The formula also incorporates the dividend payout ratio in the calculation.
From a geographical perspective, the list is currently dominated by stocks in Asia with several companies from Japan, Singapore and Hong Kong.
From a sector view, freight and resources companies have dominated the list from tailwinds that were driven by the pandemic.
Singaporean-based firm Samudera Shipping Line Ltd (SG:S56) holds the highest rank with a dividend score of 99.56. The shipping line focuses on containerized cargo and non-containerized cargo through its Container Shipping and Bulk & Tanker business segments.
Samudera has an annualized dividend yield of 25.48% which has increased significantly over 2022 following strong growth in earnings. The group’s sales grew 50% in 2021 to $708 million as shipping prices skyrocketed globally. In 2022 although sales declined to $650 million, EBITDA and net income still rose as operating leverage remained high, allowing additional excess free cash flows to be paid out to investors in the form of dividends.
Samudera has grown dividends by 34.67% over the last 3 years and has a payout ratio of 55%.
Most recently, Samudera announced that it had acquired two new container vessels for $66 million which are expected to be delivered in the last quarter of 2024 and the first quarter of 2025.
Australian property development company Sunland Group (AU:SDG) has the second highest dividend score of 99.25. The developer currently has a 32.2% dividend yield after recently announcing a special dividend of 60 cents per share in November.
For the full 2022 financial year, Sunland grew sales by 87% to $556 million and net income by 63% to $93 million which allowed the board to increase the dividend payout ratio.
Sunland currently has a cash from operations payout ratio of 20% and has grown ordinary dividends by 6.12% over the last 3 years.
Japanese transport company Mitsui OSK Lines (JP:9104) has the third highest dividend score of 99.17. The stock has a 17.94% dividend yield with a cash from operations payout ratio of 55%.
The transportation company has grown its dividend by 24.71% over the last 3 years as profits soared. Net income grew to ¥700 billion yen in 2022 and is forecasted to reach around ¥790 billion yen this year before reverting back towards a newer post-pandemic normal in 2024 and beyond.
Mitsui’s management is anticipating a potentially significant but temporary downturn in the Japanese economy this year but expects to return to a growth trajectory in the medium term.
China Hanking Holdings (HK:3788) has the fourth highest dividend score of 99.12. The stock currently has a 21.18% dividend yield with a high cash from operations payout ratio of 79%. China Hanking is a mining company that focuses on Iron Ore and Nickel.
The mining stock has grown dividends by 8% over the last 3 years following rising sales generated. Commodity prices boosted cash flows and margins over the pandemic but have begun reverting in the most recent quarters.
Japanese global logistics company Nippon Y?sen KK (JP:9101) currently has the fifth highest dividend score of 98.99. Nippon currently has a dividend yield of 15.95% from a 37% payout ratio from cash generated. Nippon operates air, land and ocean transportation services.
The shipping company has grown dividends by 37.25% over the last 3 years as operating income and cash flows reached their highest level in the decade. For the financial year 2023, Nippon has provided revenue guidance of ¥2.7 trillion which will grow from ¥2.3 trillion in 2022. Net income is expected to remain around current levels of 1 trillion for 2023.
Other stocks in the global top 10 list include Nitrogen fertilizer company CVR Partners (US:UAN) in sixth rank. CVR Partners has a dividend score of 98.99 with a dividend yield of 20.64% and a 59% cash from operations payout ratio. Over the last few months, the dividend yield has been propped up by a falling share price from peaks hit during the first quarter of 2022.
American coal miner Arch Resources (US:ARCH) has the seventh highest dividend score globally of 98.96 from a 39% payout ratio. The resources company has grown dividends by 20.96% over the last 3 years. The coal miner has benefitted from skyrocketing energy prices as a result of the Ukraine war which has resulted in ludacris cash flows that have rewarded investors in the form of dividends and other capital management initiatives.
Singaporean glove manufacturer Riverstone Holdings (SG:AP4) holds eighth place on the leaderboard with a score of 98.69 and a 77% payout ratio. The stock has a 26.47% dividend yield as a result of the pandemic which saw demand for gloves soar.
Hong Kong healthcare services company Human Health (HK:1419) is ninth on the list with a dividend score of 98.68. The stock currently has a 15.46% dividend yield and a 38% payout ratio. Human Health has grown dividends by 9% over the last 3 years.
The final stock in the top 10 is K & P International Holdings (HK:675) with a 98.33 dividend score and a 16.67% yield. K & P has a high 68% payout ratio for dividends and has grown the rate of payment by 4% over the last four years.
This article originally appeared on Fintel
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