Three stocks that offer a high dividend yield in 2024
In a period of growing economic uncertainty and geopolitical challenges, investors are increasingly looking for stable options to provide passive income. Dividend stocks are one such instrument that can provide solid returns. In 2024, three companies are attracting attention that offer attractive dividend yields and solid earnings stream coverage despite the volatility of their dividend payouts in the past.
Which 3 companies are they? 👇
UniCredit: Stable bank dividends with a view to growth
UniCredit $UNCRY is an Italian commercial bank that operates in several European regions. With a market capitalization of €56.68 billion and a dividend yield of 4.9%, it is a strong dividend stock, although its dividend history has been quite volatile in the past. Even so, the firm has solid dividend coverage by earnings streams, with its current payout ratio at 30.6%. This means that its dividend is well covered by earnings and is expected to reach a sustainable payout ratio of 59.4% over the next three years. UniCredit shares are trading below their estimated fair value, according to some analysts, suggesting the potential for price appreciation in the future.
Singapore Airlines: strong dividend yield with profitability challenges
Singapore Airlines $SINGY, a well-known airline with a market capitalisation of SGD18.79 billion, boasts a dividend yield of 7.6%. Its payout ratio of 86% and dividend cover on cash flow of 47.8% indicate the company's strong fundamentals. Although its dividend history has been volatile in the past, the company has shown an increasing trend in dividend payments in recent years. Even though Singapore Airlines is facing a decline in net profit and is expected to experience a further decline in earnings, its stable financial fundamentals and solid dividend policy make it attractive to investors seeking stable dividend income.
Precise Corporation: high dividend yield in the energy sector
Precise Corporation, a Thai electricity generation and distribution company, is among the leaders in the Thai market with a dividend yield of 7.1%. With a market capitalization of THB 3.46 billion and a payout ratio of 74.1%, it offers stable coverage of its dividend with earnings streams. Although its dividend history is less than a decade old and has been quite volatile over the past two years, the firm has shown a positive earnings trend, indicating the possibility of dividend stabilization in the future. Investors looking for high-yielding dividend stocks in the energy sector should monitor Precise Corporation closely.
Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.
Source: Yahoo Finance.
