Seeking Stability in Asian Markets: Three Dividend Stocks to Consider for February 2026
As central banks grapple with inflation and geopolitical strains ripple through supply chains, a flight to quality and predictable income is reshaping portfolio strategies. In this climate, dividend-paying stocks in Asia's diverse markets are drawing renewed scrutiny from investors seeking a blend of yield and relative stability.
Orion Holdings Corp. (KOSE:A001800)
South Korea | Confectionery | Dividend Yield: 3.5%
The maker of popular Choco Pie and other snacks presents a sweet spot for some income seekers. While its dividend history has seen some volatility, recent robust earnings growth of nearly 39% year-over-year provides a stronger foundation. Payout ratios remain conservative, suggesting room for future increases if profitability holds. "For a staple consumer goods player in a developed Asian market, Orion offers a reasonable yield with underlying business momentum," notes David Chen, a portfolio manager at Horizon Capital in Singapore. "It's not the highest yielder, but the coverage metrics are comforting."
Dong-E-E-Jiao Co., Ltd. (SZSE:000423)
China | Traditional Chinese Medicine | Dividend Yield: 4.2%
This prominent producer of donkey-hide gelatin (Ejiao) boasts an attractive headline yield. However, analysts flag concerns over sustainability, as dividends have consumed nearly all earnings recently. The company's initiation of a share buyback program signals a commitment to shareholder returns but doesn't directly address payout coverage. Maya Rodriguez, an independent market analyst based in Manila, offers a sharper take: "A 4%+ yield in this environment is a red flag, not a lure, when it's barely covered by profits. It feels like a company trying to placate shareholders amidst uncertain growth prospects in the TCM sector."
Yamato Kogyo Co., Ltd. (TSE:5444)
Japan | Steel Products | Dividend Yield: 3.3%
With major operations across Japan and Southeast Asia, Yamato Kogyo exemplifies the steady, industrial dividend payer. Its payout is well-covered by both earnings and cash flow, and the company has a decade-long track record of stable or growing dividends. A recent substantial share buyback further underscores its shareholder-friendly approach. Kenji Tanaka, a veteran investor in Tokyo, comments: "In a sector known for cyclicality, Yamato Kogyo's discipline is notable. The yield is modest, but the consistency and strong balance sheet make it a core holding for those building a defensive income stream from Asia."
Disclosure: This analysis is based on historical data and fundamental analysis. It is not financial advice. Investors should consider their own objectives and conduct independent research. Simply Wall St has no position in the stocks mentioned.