Asian Dividend Stocks To Enhance Your Portfolio

Amid heightened uncertainty in global markets, the Asian economy has demonstrated resilience, with China's recent economic indicators showing solid growth despite ongoing geopolitical tensions. As investors navigate these complexities, dividend stocks in Asia present a compelling opportunity to enhance portfolios by providing potential income stability and capital appreciation.

Top 10 Dividend Stocks In Asia

Click here to see the full list of 1130 stocks from our Top Asian Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Essex Bio-Technology (SEHK:1061)

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

Overview: Essex Bio-Technology Limited is an investment holding company that focuses on the development, manufacturing, distribution, and sale of bio-pharmaceutical products in the People’s Republic of China, Hong Kong, and internationally, with a market cap of approximately HK$1.62 billion.

Operations: Essex Bio-Technology Limited generates revenue through the development, manufacturing, distribution, and sale of bio-pharmaceutical products across various regions including the People’s Republic of China and Hong Kong.

Dividend Yield: 3.4%

Essex Bio-Technology recently proposed a HK$0.06 per share dividend for 2024, backed by a low payout ratio of 16.4% and cash flow coverage at 32.2%. Despite volatile dividends over the past decade, recent earnings growth supports current payouts. The company reported HK$307.22 million in net income for 2024, up from the previous year, though its dividend yield of 3.43% remains below top-tier Hong Kong payers. Trading at a discount to estimated fair value enhances its appeal as an investment option despite historical dividend instability.

• Unlock comprehensive insights into our analysis of Essex Bio-Technology stock in this dividend report.
• Our comprehensive valuation report raises the possibility that Essex Bio-Technology is priced lower than what may be justified by its financials.

Shandong Weigao Group Medical Polymer (SEHK:1066)

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

Overview: Shandong Weigao Group Medical Polymer Company Limited is involved in the research, development, production, wholesale, and sale of medical devices in China with a market cap of approximately HK$23.30 billion.

Operations: Shandong Weigao Group Medical Polymer Company Limited generates revenue from the research, development, production, and sale of medical devices within China.

Dividend Yield: 3.9%

Shandong Weigao Group Medical Polymer's dividend history has been volatile, with payments not consistently growing over the past decade. Despite this, its current payout is well-covered by earnings and cash flows, with a payout ratio of 47.3%. Recent earnings showed modest growth, with net income rising to CNY 2.07 billion in 2024. The company trades at good value relative to peers but offers a lower dividend yield of 3.93% compared to top Hong Kong payers.

• Take a closer look at Shandong Weigao Group Medical Polymer's potential here in our dividend report.
• In light of our recent valuation report, it seems possible that Shandong Weigao Group Medical Polymer is trading behind its estimated value.

COSCO SHIPPING International (Hong Kong) (SEHK:517)

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

Overview: COSCO SHIPPING International (Hong Kong) Co., Ltd. is an investment holding company that offers shipping services both in the People’s Republic of China and internationally, with a market cap of HK$6.77 billion.

Operations: COSCO SHIPPING International (Hong Kong) Co., Ltd. generates its revenue through providing a range of shipping services across China and global markets.

Dividend Yield: 8.3%

COSCO SHIPPING International (Hong Kong) recently announced a proposed final dividend of HK$0.215 per share, reflecting an 8.3% yield, which is among the top in Hong Kong but not well-covered by free cash flows due to a high cash payout ratio of 184.9%. Despite this, earnings grew significantly to HK$709.21 million in 2024, supporting its current payout ratio of 76.2%. However, dividend stability remains a concern given past volatility and unreliability over the last decade.

• Delve into the full analysis dividend report here for a deeper understanding of COSCO SHIPPING International (Hong Kong).
• Our valuation report here indicates COSCO SHIPPING International (Hong Kong) may be overvalued.

Make It Happen

• Click here to access our complete index of 1130 Top Asian Dividend Stocks.
• 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 a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Contemplating Other Strategies?

• 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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