Seeking Stability in Asian Markets: Three Dividend Stocks for February 2026
As central banks signal a prolonged pause in rate hikes, income-focused investors are once again scrutinizing dividend yields. While global economic signals remain mixed, Asia's diverse markets present a range of companies with robust cash flows and shareholder return policies. For portfolios seeking a blend of income and exposure to regional growth, these stocks warrant a closer look this February.
CNOOC Limited (SEHK:883)
Dividend Yield: 5.7% | Simply Wall St Dividend Rating: ★★★★☆☆
The Hong Kong-listed energy giant, with a market capitalisation of HK$1.21 trillion, continues to be a cornerstone for yield seekers. Its dividend history shows volatility, but payments are supported by earnings (50.8% payout ratio) and strong cash flows (62.7% payout ratio). Recent production starts at key projects like Brazil's Buzios6 and new discoveries in the Bohai Sea strengthen its resource base, providing a foundation for future distributions. However, its 5.7% yield sits below the 6.76% average of Hong Kong's top dividend payers, reflecting its relative stability within the sector.
Mitani Corporation (TSE:8066)
Dividend Yield: 3.2% | Simply Wall St Dividend Rating: ★★★★☆☆
This Japanese conglomerate, active in sectors from construction materials to IT services (¥199.03 billion market cap), offers a different profile. Its dividends have also been inconsistent historically, though they are comfortably covered by earnings (32.6% payout) and cash flow (26.6% payout). Trading at a significant 55% discount to its estimated fair value, it presents a value opportunity. Its 3.24% yield is slightly below Japan's elite payer average of 3.48%, but a five-year earnings growth rate of 12.5% annually suggests potential for more reliable future payouts.
MediaTek Inc. (TWSE:2454)
Dividend Yield: 3.1% | Simply Wall St Dividend Rating: ★★★★☆☆
The Taiwanese semiconductor designer (NT$2.81 trillion market cap) brings growth exposure to the income conversation. Dividend payments have been unstable over the past decade, even with coverage from earnings (80.9% payout) and cash flow (72.9%). Its 3.07% yield is notably lower than Taiwan's market leaders (averaging 5.36%). The appeal lies in its valuation—trading at a P/E of 26.5x versus the industry's 34x average—and its strategic position in mobile and multimedia chips, making it a pick for those prioritizing capital appreciation alongside income.
Investor Perspectives:
"In this environment, CNOOC's cash flow visibility is a major comfort. It's not the highest yield, but the coverage ratios and project pipeline suggest sustainability, which is paramount," says David Chen, a portfolio manager based in Singapore.
Akiko Tanaka, a retail investor from Osaka, notes: "Mitani's deep discount is intriguing. It feels like a value play that happens to pay a dividend. I'm cautiously optimistic that management's diversified strategy will smooth out the payout volatility."
Offering a sharper critique, Marcus Thorne, an independent analyst, argues: "This list highlights the perennial compromise in Asia. You chase yield with a volatile payer like CNOOC tied to commodity cycles, or settle for mediocre yields with 'growth' stories like MediaTek that have a poor track record of consistent returns. Where are the truly high-quality, shareholder-friendly compounders?"
Priya Sharma, a financial advisor in Mumbai, adds: "For clients, context is everything. MediaTek might fit a younger accumulator's portfolio for growth, while CNOOC could suit a retiree needing immediate cash flow. The 'one-size-fits-all' dividend screen is a starting point, not the finish line."
This analysis is based on historical data and analyst forecasts using an unbiased methodology. It is not intended as financial advice nor a recommendation to buy or sell any security, and does not consider individual objectives or financial circumstances. Our long-term focused analysis is driven by fundamental data and may not incorporate the latest price-sensitive company announcements. The author and Simply Wall St have no position in any stocks mentioned.
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