3 SEHK Dividend Stocks Yielding Up To 8.5

As the Hong Kong market navigates through a landscape of mixed global economic signals and corporate earnings reports, investors are increasingly seeking stability and income in their portfolios. In this environment, dividend stocks can offer a reliable source of returns, especially when they yield up to 8.5%. A good dividend stock typically combines strong fundamentals with consistent payout histories, making them attractive in times of economic uncertainty and fluctuating market conditions.

Top 10 Dividend Stocks In Hong Kong

Name	Dividend Yield	Dividend Rating
Luk Fook Holdings (International) (SEHK:590)	9.60%	★★★★★☆
Chongqing Rural Commercial Bank (SEHK:3618)	8.34%	★★★★★☆
Bank of China (SEHK:3988)	7.55%	★★★★★☆
Lenovo Group (SEHK:992)	4.05%	★★★★★☆
Chow Tai Fook Jewellery Group (SEHK:1929)	8.96%	★★★★★☆
China Construction Bank (SEHK:939)	7.98%	★★★★★☆
Sinopharm Group (SEHK:1099)	5.58%	★★★★★☆
PC Partner Group (SEHK:1263)	9.62%	★★★★★☆
Zhongsheng Group Holdings (SEHK:881)	8.50%	★★★★★☆
Zhejiang Expressway (SEHK:576)	7.18%	★★★★★☆

Click here to see the full list of 73 stocks from our Top SEHK Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Datang Environment Industry Group (SEHK:1272)

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

Overview: Datang Environment Industry Group Co., Ltd. operates in the environmental protection industry, focusing on services such as flue gas desulfurization and denitrification, with a market cap of HK$2.08 billion.

Operations: Datang Environment Industry Group Co., Ltd.'s revenue segments include Renewable Energy Engineering (CN¥243.94 million) and Environmental Protection and Energy Conservation Solutions (CN¥5.56 billion).

Dividend Yield: 8.5%

Datang Environment Industry Group Co., Ltd. recently declared an interim dividend of RMB 0.03 per share for the first half of 2024, reflecting a cautious but consistent approach to shareholder returns. Despite a high debt level, the company's dividends are well-covered by both earnings (payout ratio: 39.4%) and cash flows (cash payout ratio: 11.9%). However, its dividend history has been volatile over the past seven years, with payments decreasing at times despite recent robust earnings growth and improved net income to CNY 399.85 million for H1 2024 from CNY 266.22 million last year.

• Click to explore a detailed breakdown of our findings in Datang Environment Industry Group's dividend report.
• Our valuation report unveils the possibility Datang Environment Industry Group's shares may be trading at a discount.

Four Seas Mercantile Holdings (SEHK:374)

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

Overview: Four Seas Mercantile Holdings Limited (SEHK:374) 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$960.55 million.

Operations: Four Seas Mercantile Holdings Limited generates revenue primarily from its food processing segment, which amounts to HK$3.90 billion.

Dividend Yield: 3.8%

Four Seas Mercantile Holdings declared a final dividend of HK$0.065 per share for FY2024, maintaining stable dividends over the past decade. However, its payout ratio of 105.3% indicates dividends are not covered by earnings, although the cash payout ratio remains low at 12.9%. Recent earnings show a decline in net income to HK$34.66 million from HK$40.73 million last year due to the absence of one-off tax refunds and pandemic subsidies previously received.

• Dive into the specifics of Four Seas Mercantile Holdings here with our thorough dividend report.
• Our expertly prepared valuation report Four Seas Mercantile Holdings implies its share price may be too high.

VSTECS Holdings (SEHK:856)

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

Overview: VSTECS Holdings Limited is an investment holding company that develops IT product channels and provides technical solution integration services in North Asia and South East Asia, with a market cap of HK$6.31 billion.

Operations: VSTECS Holdings Limited's revenue segments include Cloud Computing (HK$3.44 billion), Enterprise Systems (HK$44.82 billion), and Consumer Electronics (HK$31.69 billion).

Dividend Yield: 5.8%

VSTECS Holdings reported H1 2024 sales of HK$40.08 billion, up from HK$34.03 billion last year, but net income decreased to HK$453.32 million from HK$502.08 million. The company has a reasonable payout ratio of 41.1%, ensuring dividends are covered by earnings and cash flows, despite an unstable dividend history over the past decade. Recent share repurchases aim to enhance shareholder value and earnings per share, while dividends remain below top-tier levels in Hong Kong's market.

• Get an in-depth perspective on VSTECS Holdings' performance by reading our dividend report here.
• Our comprehensive valuation report raises the possibility that VSTECS Holdings is priced lower than what may be justified by its financials.

Taking Advantage

• Get an in-depth perspective on all 73 Top SEHK Dividend Stocks by using our screener here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Curious About Other Options?

• 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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