As global markets exhibit mixed signals with record highs in major indices and cooling economic indicators such as manufacturing and service sector activities, investors might find stability in dividend stocks. These stocks not only offer potential income through dividends but also provide an opportunity to participate in the equity growth of financially solid companies, making them appealing during uncertain economic times.

Top 10 Dividend Stocks

Click here to see the full list of 2007 stocks from our Top Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

City Bank

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

Overview: City Bank PLC operates in Bangladesh, offering a range of financial products and services, with a market capitalization of approximately BDT 27.75 billion.

Operations: City Bank PLC generates its revenue from a variety of financial products and services within Bangladesh.

Dividend Yield: 6.6%

City Bank's dividend sustainability is questionable with an unstable track record and volatile payments over its 8-year history of dividends. Despite a low payout ratio of 28.6%, which suggests current earnings adequately cover dividends, the bank has experienced fluctuations in dividend amounts. Additionally, while dividends are projected to be well-covered by earnings in three years (11.5% payout ratio), City Bank's high level of bad loans at 3.6% raises concerns about its financial health, potentially impacting future dividend reliability.

• Unlock comprehensive insights into our analysis of City Bank stock in this dividend report.

• In light of our recent valuation report, it seems possible that City Bank is trading behind its estimated value.

Atlas Honda

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

Overview: Atlas Honda Limited, primarily operating in Pakistan, engages in the manufacturing and marketing of motorcycles, spare parts, and engine oil with a market capitalization of approximately PKR 78.63 billion.

Operations: Atlas Honda Limited generates PKR 148.42 billion in revenue from its auto manufacturing segment.

Dividend Yield: 9.5%

Atlas Honda has shown a 39% growth in earnings over the past year, yet its dividend history is marked by volatility and unreliability, with significant annual drops exceeding 20%. Despite this, dividends are reasonably covered by both earnings and cash flows, with payout ratios of 50.3% and 64.8%, respectively. However, its dividend yield of 9.47% remains below the top-tier market average of 11.42%. The company's price-to-earnings ratio stands favorable at 10.6x compared to the industry average of 17.8x.