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3 High-Yield Asian Dividend Stocks to Consider in 2025

Henry RiversMonday, May 5, 2025 1:02 am ET

24min read

Investors seeking steady income streams in Asia are spoilt for choice, with several companies offering dividend yields exceeding 6%—and even up to 8.7%—as of early 2025. Amid geopolitical tensions and macroeconomic uncertainty, these stocks stand out for their strong payout ratios, valuation discounts, and sector resilience. Below are three top picks, each with unique risks and rewards.

1. Chongqing Rural Commercial Bank (SEHK:3618) – 8.51% Yield

This Chinese banking giant leads our list with an eye-catching dividend yield of 8.51%, making it one of the highest-yielding stocks in Asia.

Key Details:
- Market Cap: Not explicitly stated, but it’s a major player in China’s banking sector.
- Operations: Focuses on traditional banking services, including retail and corporate lending.
- Sustainability: While the dividend payout ratio isn’t detailed, its ★★★★★★★ Dividend Rating (per Simply Wall St) suggests robust financial health. However, investors should monitor risks like China’s property market slowdown and regulatory changes.

Why It’s a Buy:
- Trading at a 38% discount to its estimated fair value, it offers both income and potential upside.
- The bank’s dominance in regional markets provides stability, even as broader economic growth slows.

Risk Alert: Geopolitical tensions and regulatory shifts in China could pressure its profitability.

2. Samsung Securities Co., Ltd. (KOSE:A016360) – 6.7% Yield

South Korea’s Samsung Securities offers a 6.7% yield, backed by a diversified financial services portfolio.

Key Details:
- Market Cap: ₩4.66 trillion (~$3.16 billion USD).
- Operations: Generates revenue through securities trading, corporate finance, and international sales.
- Sustainability:
- Payout ratios of 34.8% (earnings) and 24.1% (cash) indicate strong coverage.
- Despite historical volatility in dividend payments, recent earnings growth has stabilized payouts.

Why It’s a Buy:
- Trades below peer valuations, offering good value for income investors.
- The firm’s global reach mitigates regional risk exposure.

Risk Alert: Its dividend track record includes years of 20%+ annual drops, so patience is key.

3. FY Group (TWSE:6807) – 6.7% Yield

Taiwan’s FY Group, a furniture manufacturing giant, delivers a 6.7% yield with conservative financial management.

Key Details:
- Market Cap: Not disclosed, but its 50.7% earnings payout ratio ensures dividends are well-covered.
- Operations: Sells furniture in Taiwan and internationally, with net income nearly doubling in 2024 to NT$479.49 million.
- Valuation: Trades at a 30–40% discount to fair value, making it a top pick for long-term investors.

Why It’s a Buy:
- A 41.2% cash flow coverage ratio supports its dividend sustainability.
- The furniture sector’s resilience during economic cycles adds to its appeal.

Risk Alert: Demand for furniture could weaken if global trade tensions escalate or consumer spending slows.

Excluded Candidates:

ASUSTeK Computer (TWSE:2357): A 6.1% yield is tempting, but its 461.9% cash payout ratio makes dividends unsustainable.
Chongqing Department Store (SHSE:600729): A 4.1% yield falls short of our 6% threshold.

Conclusion: Prioritize Yield and Sustainability

For income investors, Chongqing Rural Commercial Bank is the best bet for its 8.51% yield and valuation discount, despite macro risks. Samsung Securities and FY Group follow closely, offering strong payouts with manageable risks.

Investors should:
1. Check payout ratios: Aim for earnings coverage below 70% and cash coverage above 30%.
2. Monitor valuations: Stocks like fy group and Samsung trade at discounts, enhancing safety margins.
3. Avoid over-leveraged firms: Companies like ASUSTeK, with unsustainable payout ratios, should be avoided.

While these stocks offer compelling income opportunities, geopolitical and sector-specific risks remain. Always cross-reference with updated financial statements and consider diversification to balance risk and reward.

In a market seeking stability, these three Asian dividend stocks stand out as top choices for 2025.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.