SEHK Dividend Stocks Including China Resources Gas Group And 2 Other Top Picks

Hong Kong's Hang Seng Index recently experienced a significant rally, bolstered by China's announcement of robust stimulus measures aimed at revitalizing its economy. This positive market sentiment provides a fertile backdrop for exploring dividend stocks, which can offer steady income and potential capital appreciation. In the current environment, a good dividend stock is typically characterized by solid fundamentals, consistent payout history, and resilience to economic fluctuations.

Top 10 Dividend Stocks In Hong Kong

Name	Dividend Yield	Dividend Rating
Consun Pharmaceutical Group (SEHK:1681)	8.87%	★★★★★☆
China Hongqiao Group (SEHK:1378)	9.20%	★★★★★☆
Chongqing Rural Commercial Bank (SEHK:3618)	7.94%	★★★★★☆
Bank of China (SEHK:3988)	7.18%	★★★★★☆
Lion Rock Group (SEHK:1127)	8.15%	★★★★★☆
China Construction Bank (SEHK:939)	7.29%	★★★★★☆
PC Partner Group (SEHK:1263)	9.37%	★★★★★☆
Tianjin Development Holdings (SEHK:882)	7.56%	★★★★★☆
Sinopharm Group (SEHK:1099)	4.72%	★★★★★☆
China Electronics Huada Technology (SEHK:85)	9.13%	★★★★★☆

Click here to see the full list of 88 stocks from our Top SEHK Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

China Resources Gas Group (SEHK:1193)

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

Overview: China Resources Gas Group Limited, with a market cap of HK$76.02 billion, engages in the sale of natural and liquefied gas and the connection of gas pipelines.

Operations: China Resources Gas Group Limited generates revenue from various segments, including HK$3.23 billion from gas stations, HK$9.65 billion from gas connection services, HK$4.34 billion from comprehensive services, HK$444.11 million from design and construction services, and HK$87.31 billion from the sale and distribution of gas fuel and related products (excluding gas stations).

Dividend Yield: 3.5%

China Resources Gas Group's interim dividend of HK$0.25 per share, with an ex-dividend date on 12 September 2024, reflects a growing payout trend over the past decade. Despite a relatively low dividend yield compared to the top Hong Kong payers, its dividends are well-covered by both earnings (55.5% payout ratio) and cash flows (61.6% cash payout ratio). However, investors should note the company's history of volatile and unreliable dividend payments.

• Click to explore a detailed breakdown of our findings in China Resources Gas Group's dividend report.
• In light of our recent valuation report, it seems possible that China Resources Gas Group is trading beyond its estimated value.

Xtep International Holdings (SEHK:1368)

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

Overview: Xtep International Holdings Limited designs, develops, manufactures, and markets sports footwear, apparel, and accessories for adults and children in China with a market cap of HK$14.70 billion.

Operations: Xtep International Holdings Limited generates revenue from three main segments: Athleisure (CN¥1.68 billion), Mass Market (CN¥12.31 billion), and Professional Sports (CN¥1.04 billion).

Dividend Yield: 3.8%

Xtep International Holdings' dividend yield of 3.8% is modest compared to top Hong Kong payers, but recent increases, including an interim dividend of HK$0.156 per share and a special dividend of HK$0.447 per share, highlight its commitment to shareholders. Despite a history of volatile dividends, current payouts are well-covered by earnings (48.8% payout ratio) and cash flows (33.9% cash payout ratio). Recent product launches and strong H1 2024 earnings growth underscore the company's robust financial health.

• Delve into the full analysis dividend report here for a deeper understanding of Xtep International Holdings.
• The analysis detailed in our Xtep International Holdings valuation report hints at an deflated share price compared to its estimated value.

China Hongqiao Group (SEHK:1378)

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

Overview: China Hongqiao Group Limited is an investment holding company that manufactures and sells aluminum products in the People's Republic of China and Indonesia, with a market cap of HK$121.48 billion.

Operations: China Hongqiao Group Limited generates revenue primarily from the manufacture and sales of aluminum products, amounting to CN¥141.48 billion.

Dividend Yield: 9.2%

China Hongqiao Group's dividend payments are well-covered by earnings (42.3% payout ratio) and cash flows (48.6% cash payout ratio), with a recent interim dividend of HK$0.59 per share declared for H1 2024. Despite being in the top 25% of dividend payers in Hong Kong, its dividends have been volatile over the past decade, raising concerns about reliability and sustainability. However, strong recent earnings growth and good relative value compared to peers offer some positives for investors.

• Take a closer look at China Hongqiao Group's potential here in our dividend report.
• Our comprehensive valuation report raises the possibility that China Hongqiao Group is priced lower than what may be justified by its financials.

Next Steps

• Navigate through the entire inventory of 88 Top SEHK Dividend Stocks here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• 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.

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