Top SEHK Dividend Stocks To Consider In September 2024

As global markets navigate a period of economic adjustments, the Hong Kong market has shown resilience amid broader fluctuations. With the European Central Bank cutting rates and anticipation of similar moves by the U.S. Federal Reserve, investors are keenly observing dividend stocks for their potential stability and income generation. In this context, selecting strong dividend stocks can provide a reliable income stream while potentially offering some cushion against market volatility.

Top 10 Dividend Stocks In Hong Kong

Name	Dividend Yield	Dividend Rating
Chongqing Rural Commercial Bank (SEHK:3618)	8.66%	★★★★★☆
Bank of China (SEHK:3988)	7.64%	★★★★★☆
Lenovo Group (SEHK:992)	4.03%	★★★★★☆
Chow Tai Fook Jewellery Group (SEHK:1929)	9.17%	★★★★★☆
China Construction Bank (SEHK:939)	7.94%	★★★★★☆
Sinopharm Group (SEHK:1099)	5.70%	★★★★★☆
Zhongsheng Group Holdings (SEHK:881)	8.83%	★★★★★☆
PC Partner Group (SEHK:1263)	9.98%	★★★★★☆
China Resources Land (SEHK:1109)	8.25%	★★★★★☆
Tian An China Investments (SEHK:28)	5.73%	★★★★★☆

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

Let's dive into some prime choices out of the screener.

Sinopharm Group (SEHK:1099)

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

Overview: Sinopharm Group Co. Ltd., with a market cap of HK$52.24 billion, operates in the wholesale and retail sectors for pharmaceuticals, medical devices, and healthcare products in China through its subsidiaries.

Operations: Sinopharm Group Co. Ltd., along with its subsidiaries, generates revenue primarily from the wholesale and retail distribution of pharmaceuticals, medical devices, and healthcare products in China.

Dividend Yield: 5.7%

Sinopharm Group's dividend yield of 5.7%, though lower than the top 25% of Hong Kong dividend payers, remains attractive due to its stability and growth over the past decade. The company's dividends are well-covered by earnings (29.9% payout ratio) and cash flows (19.4% cash payout ratio). Recent board changes and auditor appointments suggest a focus on governance, while half-year earnings showed slight revenue growth to CNY 24.76 billion with net income at CNY 1 billion, indicating steady financial health for sustaining dividends.

• Click here to discover the nuances of Sinopharm Group with our detailed analytical dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Sinopharm Group shares in the market.

China Nonferrous Mining (SEHK:1258)

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

Overview: China Nonferrous Mining Corporation Limited (SEHK:1258) is an investment holding company involved in the exploration, mining, ore processing, leaching, smelting, and sale of copper cathodes, blister copper, and copper anodes with a market cap of HK$18.92 billion.

Operations: China Nonferrous Mining Corporation Limited generates revenue from leaching ($1.04 billion) and smelting ($2.77 billion).

Dividend Yield: 4.8%

China Nonferrous Mining's dividend payments have been volatile over the past decade, despite a recent increase. The company's dividends are well-covered by earnings (40% payout ratio) and cash flows (30.4% cash payout ratio). Recent half-year results showed sales of US$2 billion and net income of US$219.11 million, reflecting steady growth. However, shareholders experienced dilution in the past year, which may impact future dividend stability.

• Unlock comprehensive insights into our analysis of China Nonferrous Mining stock in this dividend report.
• The valuation report we've compiled suggests that China Nonferrous Mining's current price could be quite moderate.

Lenovo Group (SEHK:992)

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

Overview: Lenovo Group Limited is an investment holding company that develops, manufactures, and markets technology products and services, with a market cap of HK$116.60 billion.

Operations: Lenovo Group Limited generates its revenue primarily from three segments: Intelligent Devices Group (IDG) with $45.76 billion, Solutions and Services Group (SSG) with $7.64 billion, and Infrastructure Solutions Group (ISG) with $10.17 billion.

Dividend Yield: 4%

Lenovo Group recently declared a final dividend of HK$0.30 per share for the fiscal year ended March 31, 2024. Despite a reasonable payout ratio, shareholders have faced dilution over the past year. Lenovo's dividends are well-covered by both earnings and cash flows, suggesting sustainability. The company's first-quarter results showed strong growth with sales of US$15.45 billion and net income of US$243.37 million, indicating robust financial health that supports its dividend strategy.

• Dive into the specifics of Lenovo Group here with our thorough dividend report.
• Our valuation report unveils the possibility Lenovo Group's shares may be trading at a discount.

Where To Now?

• Get an in-depth perspective on all 73 Top SEHK Dividend Stocks by using our screener here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Searching for a Fresh Perspective?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com