As global markets experience varied economic shifts, the Hong Kong market has faced its own challenges, with the Hang Seng Index recently seeing a notable decline. In this environment, dividend stocks can offer stability and income potential for investors seeking reliable returns amid market fluctuations.
Top 10 Dividend Stocks In Hong Kong
| Name | Dividend Yield | Dividend Rating |
| Consun Pharmaceutical Group (SEHK:1681) | 7.73% | ★★★★★☆ |
| China Hongqiao Group (SEHK:1378) | 8.59% | ★★★★★☆ |
| Chongqing Rural Commercial Bank (SEHK:3618) | 6.94% | ★★★★★☆ |
| Playmates Toys (SEHK:869) | 8.82% | ★★★★★☆ |
| Lion Rock Group (SEHK:1127) | 8.09% | ★★★★★☆ |
| China Construction Bank (SEHK:939) | 7.02% | ★★★★★☆ |
| Bank of China (SEHK:3988) | 6.90% | ★★★★★☆ |
| PC Partner Group (SEHK:1263) | 8.58% | ★★★★★☆ |
| Tianjin Development Holdings (SEHK:882) | 6.99% | ★★★★★☆ |
| Sinopharm Group (SEHK:1099) | 4.68% | ★★★★★☆ |
Click here to see the full list of 94 stocks from our Top SEHK Dividend Stocks screener.
We'll examine a selection from our screener results.
Agricultural Bank of China (SEHK:1288)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Agricultural Bank of China Limited, along with its subsidiaries, offers a range of banking products and services and has a market capitalization of approximately HK$1.89 trillion.
Operations: Agricultural Bank of China Limited generates revenue through its main segments: Personal Banking (CN¥310.36 billion), Corporate Banking (CN¥196.96 billion), and Treasury Operations (CN¥36.07 billion).
Dividend Yield: 6.5%
Agricultural Bank of China offers a stable dividend profile, with payments increasing steadily over the past decade. The recent proposal for interim cash dividends totaling RMB 40.74 billion underscores its commitment to returning capital to shareholders. With a payout ratio of 47.9%, dividends are well covered by earnings, ensuring sustainability. However, its dividend yield of 6.55% is lower than the top quartile in Hong Kong, potentially limiting its appeal among high-yield seekers despite reliable growth and coverage forecasts.
- Click here and access our complete dividend analysis report to understand the dynamics of Agricultural Bank of China.
- Upon reviewing our latest valuation report, Agricultural Bank of China's share price might be too pessimistic.
Chongqing Rural Commercial Bank (SEHK:3618)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Chongqing Rural Commercial Bank Co., Ltd. operates in the People's Republic of China, providing banking services through its subsidiaries, with a market cap of HK$69.72 billion.
Operations: Chongqing Rural Commercial Bank Co., Ltd. generates revenue primarily from Personal Banking (CN¥8.51 billion), Corporate Banking (CN¥6.98 billion), and Financial Market Operations (CN¥5.58 billion).
Dividend Yield: 6.9%
Chongqing Rural Commercial Bank maintains a reliable dividend history with stable and growing payments over the past decade. The bank's recent earnings report shows an increase in net income to CNY 7.36 billion, supporting its sustainable payout ratio of 29.7%. Despite trading at a good value, its dividend yield of 6.94% is below the top tier in Hong Kong but remains attractive due to consistent coverage by earnings and favorable growth forecasts.
- Dive into the specifics of Chongqing Rural Commercial Bank here with our thorough dividend report.
- Our expertly prepared valuation report Chongqing Rural Commercial Bank implies its share price may be lower than expected.
Four Seas Mercantile Holdings (SEHK:374)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Four Seas Mercantile Holdings Limited is an investment holding company involved in the manufacture and trade of snack foods, confectionery, beverages, frozen food products, noodles, and ham-related products in Hong Kong and Mainland China, with a market cap of HK$968.18 million.
Operations: The company's revenue segments include Food Processing, which generated HK$3.90 billion.
Dividend Yield: 3.8%
Four Seas Mercantile Holdings has a stable and reliable dividend history over the past decade, with recent affirmations of a 6.5 HK cents per share dividend for the year ended March 2024. However, its high payout ratio of 105.3% indicates dividends are not well covered by earnings, though cash flows sufficiently cover them with a low cash payout ratio of 12.9%. Despite trading below estimated fair value, its yield of 3.77% is relatively low in Hong Kong's market context. Recent share buybacks aim to enhance net assets and earnings per share, potentially supporting future dividend stability.
- Get an in-depth perspective on Four Seas Mercantile Holdings' performance by reading our dividend report here.
- Insights from our recent valuation report point to the potential overvaluation of Four Seas Mercantile Holdings shares in the market.
Key Takeaways
- Explore the 94 names from our Top SEHK Dividend Stocks screener here.
- Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
- Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.
Want To Explore Some Alternatives?
- 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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About SEHK:1288
Flawless balance sheet established dividend payer.
