As the U.S. stock market looks to rebound from a challenging end to 2024, with major indices like the Dow Jones and S&P 500 starting the new year on a positive note, investors are increasingly turning their attention to dividend stocks as a source of steady income amid fluctuating conditions. In this environment, selecting dividend stocks that offer attractive yields can be an effective strategy for those seeking stability and potential growth in their investment portfolios.
Let’s dive into some prime choices out of the screener.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Parke Bancorp, Inc. is a bank holding company for Parke Bank, offering personal and business financial services to individuals and small to mid-sized businesses, with a market cap of $243.75 million.
Operations: Parke Bancorp, Inc. generates revenue of $63.15 million from its Community Banking segment, providing financial services to individuals and small to mid-sized businesses.
Dividend Yield: 3.5%
Parke Bancorp offers a reliable dividend yield of 3.51%, though it falls short of the top 25% in the US market. The company’s dividends have been stable and growing over the past decade, supported by a low payout ratio of 30.5%. Recent insider selling could be a concern, but recent earnings showed strong net income growth despite lower net interest income. A $0.18 per share dividend is set for January 2025, following share buybacks worth $2.01 million.
NasdaqCM:PKBK Dividend History as at Jan 2025
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Provident Financial Holdings, Inc., with a market cap of $107.60 million, serves as the holding company for Provident Savings Bank, F.S.B.
Operations: Provident Financial Holdings, Inc. generates its revenue primarily from its Banking segment, which accounts for $39.79 million.
Dividend Yield: 3.5%
Provident Financial Holdings offers a stable and growing dividend, currently yielding 3.52%, though below the top 25% in the US market. The payout ratio of 51.6% indicates dividends are covered by earnings. Recent earnings showed net income growth despite a decline in net interest income. A quarterly dividend of $0.14 per share is affirmed, payable December 5, 2024, following share buybacks totaling $3.41 million completed recently.
NasdaqGS:PROV Dividend History as at Jan 2025
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Coca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, is involved in the production, marketing, sale, and distribution of Coca-Cola trademark beverages across several Latin American countries including Mexico and Brazil, with a market cap of $16.36 billion.
Operations: Coca-Cola FEMSA generates revenue from its non-alcoholic beverages segment, which amounts to MX$267.59 billion.
Dividend Yield: 3.7%
Coca-Cola FEMSA offers a reliable dividend yield of 3.75%, though it falls below the top 25% in the US market. The dividends are well-covered by earnings and cash flows, with payout ratios at 58.7% and 65.9%, respectively, indicating sustainability. Recent earnings reports show strong growth, with Q3 sales reaching MXN 69.6 billion and net income increasing to MXN 5.86 billion, supporting its stable dividend history over the past decade.
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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 NasdaqCM:PKBK NasdaqGS:PROV and NYSE:KOF.
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