3 Dividend Stocks To Consider With Yields Up To 3.5%

As global markets navigate a mixed start to the year, with U.S. indices showing resilience despite recent economic data challenges, investors are increasingly turning their attention to dividend stocks as a potential source of steady income. In such an environment, selecting dividend stocks with attractive yields can offer both stability and the opportunity for growth, making them a compelling consideration for those looking to balance risk and reward in their portfolios.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Peoples Bancorp (NasdaqGS:PEBO)	5.11%	★★★★★★
Tsubakimoto Chain (TSE:6371)	4.26%	★★★★★★
CAC Holdings (TSE:4725)	4.78%	★★★★★★
Southside Bancshares (NYSE:SBSI)	4.63%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.41%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.42%	★★★★★★
Premier Financial (NasdaqGS:PFC)	4.91%	★★★★★★
E J Holdings (TSE:2153)	3.81%	★★★★★★
Citizens & Northern (NasdaqCM:CZNC)	6.14%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.99%	★★★★★★

Click here to see the full list of 1973 stocks from our Top Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Nokia Oyj (HLSE:NOKIA)

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

Overview: Nokia Oyj offers mobile, fixed, and cloud network solutions globally and has a market cap of approximately €23.11 billion.

Operations: Nokia Oyj's revenue segments include Mobile Networks (€7.74 billion), Nokia Technologies (€1.72 billion), Network Infrastructure (€7.32 billion), and Cloud and Network Services (€2.95 billion).

Dividend Yield: 2.9%

Nokia's dividend profile shows both strengths and challenges. While the company's dividends have increased over the past decade, they have been volatile, with some years experiencing significant drops. Currently, Nokia's payout ratio of 78.3% indicates that earnings cover its dividends, and a low cash payout ratio of 19% suggests strong cash flow support. However, its profit margins have declined from last year, potentially impacting future dividend stability. Recent strategic initiatives in network security and partnerships could bolster long-term growth prospects.

• Navigate through the intricacies of Nokia Oyj with our comprehensive dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Nokia Oyj shares in the market.

AB SKF (OM:SKF B)

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

Overview: AB SKF (publ) is a global company that designs, manufactures, and sells bearings and units, seals, lubrication systems, condition monitoring, and services with a market cap of approximately SEK94.14 billion.

Operations: AB SKF's revenue is primarily derived from its Industrial segment, which accounts for SEK69.58 billion, and its Automotive segment, contributing SEK28.86 billion.

Dividend Yield: 3.5%

AB SKF's dividend profile presents a mixed picture. The company's dividends are covered by earnings and cash flows, with payout ratios of 61.1% and 54.9%, respectively, but have been volatile over the past decade. Despite trading at a good value compared to peers, its dividend yield of 3.5% is below the top quartile in Sweden. Recent product innovations in bearings could enhance long-term profitability, although current sales guidance indicates challenges ahead.

• Take a closer look at AB SKF's potential here in our dividend report.
• The analysis detailed in our AB SKF valuation report hints at an deflated share price compared to its estimated value.

Novartis (SWX:NOVN)

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

Overview: Novartis AG is involved in the research, development, manufacture, and marketing of healthcare products globally and has a market cap of CHF177.86 billion.

Operations: Novartis AG generates revenue primarily from its Innovative Medicines segment, which accounts for $49.94 billion.

Dividend Yield: 3.6%

Novartis offers a reliable dividend yield of 3.6%, supported by stable earnings and cash flow coverage with payout ratios of 67.8% and 57.2%, respectively. The company has consistently increased its dividends over the past decade, though its yield is below the top quartile in Switzerland. Recent positive trial results, such as those for OAV101 IT and Kisqali, may bolster long-term profitability, enhancing its appeal to dividend investors despite current yield limitations.

• Get an in-depth perspective on Novartis' performance by reading our dividend report here.
• In light of our recent valuation report, it seems possible that Novartis is trading behind its estimated value.

Summing It All Up

• Access the full spectrum of 1973 Top Dividend Stocks by clicking on this link.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

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