Top 3 SEHK Dividend Stocks For September 2024

As global markets grapple with economic uncertainties, the Hong Kong market has shown resilience, particularly in sectors known for stability and consistent returns. Amid these conditions, dividend stocks stand out as a compelling option for investors seeking steady income streams. In this environment, identifying strong dividend stocks becomes crucial. Companies with robust financial health and a history of reliable payouts are often seen as safe havens during volatile times.

Top 10 Dividend Stocks In Hong Kong

Name	Dividend Yield	Dividend Rating
Chongqing Rural Commercial Bank (SEHK:3618)	8.79%	★★★★★★
Luk Fook Holdings (International) (SEHK:590)	9.76%	★★★★★☆
Bank of China (SEHK:3988)	7.88%	★★★★★☆
Lenovo Group (SEHK:992)	4.21%	★★★★★☆
Chow Tai Fook Jewellery Group (SEHK:1929)	9.00%	★★★★★☆
China Construction Bank (SEHK:939)	8.10%	★★★★★☆
Sinopharm Group (SEHK:1099)	5.93%	★★★★★☆
Zhongsheng Group Holdings (SEHK:881)	8.97%	★★★★★☆
PC Partner Group (SEHK:1263)	10.00%	★★★★★☆
Tian An China Investments (SEHK:28)	5.33%	★★★★★☆

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.

Shandong Weigao Group Medical Polymer (SEHK:1066)

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

Overview: Shandong Weigao Group Medical Polymer Company Limited focuses on the R&D, production, wholesale, and sale of medical devices in China with a market cap of HK$19.75 billion.

Operations: Shandong Weigao Group Medical Polymer Company Limited generates revenue from Orthopaedic Products (CN¥1.22 billion), Interventional Products (CN¥1.99 billion), Medical Device Products (CN¥6.74 billion), Blood Management Products (CN¥936.84 million), and Pharma Packaging Products (CN¥2.13 billion).

Dividend Yield: 4.2%

Shandong Weigao Group Medical Polymer's dividend yield is relatively low at 4.23% compared to the top 25% of Hong Kong dividend payers. Despite a volatile dividend history over the past decade, recent proposals indicate an increased interim dividend of RMB 0.0919 per share for H1 2024, up from RMB 0.0734 in H1 2023. The company's dividends are well-covered by earnings (payout ratio: 43.9%) and cash flows (cash payout ratio: 37.8%).

• Unlock comprehensive insights into our analysis of Shandong Weigao Group Medical Polymer stock in this dividend report.
• Our comprehensive valuation report raises the possibility that Shandong Weigao Group Medical Polymer is priced lower than what may be justified by its financials.

Pak Fah Yeow International (SEHK:239)

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

Overview: Pak Fah Yeow International Limited, with a market cap of HK$794.68 million, is an investment holding company that manufactures, markets, and distributes healthcare products under the Hoe Hin brand name.

Operations: Pak Fah Yeow International Limited generates revenue primarily from healthcare products (HK$247.67 million), followed by property investments (HK$10.03 million) and treasury investments (HK$7.52 million).

Dividend Yield: 8.4%

Pak Fah Yeow International's dividends are well-covered by earnings (payout ratio: 22%) and cash flows (cash payout ratio: 45.8%), though the dividend yield of 8.35% is slightly below the top quartile in Hong Kong. The company has a history of volatile dividend payments over the past decade but recently announced special interim and interim dividends totaling HKD 0.095 per share for H1 2024, amidst a slight decline in net income to HKD 47.41 million from HKD 55.99 million year-over-year due to unrealized fair value losses on investment properties.

• Dive into the specifics of Pak Fah Yeow International here with our thorough dividend report.
• Our comprehensive valuation report raises the possibility that Pak Fah Yeow International is priced higher than what may be justified by its financials.

Cathay Pacific Airways (SEHK:293)

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

Overview: Cathay Pacific Airways Limited, along with its subsidiaries, provides international passenger and air cargo transportation services and has a market cap of HK$50.67 billion.

Operations: Cathay Pacific Airways Limited's revenue segments include HK Express with HK$6.18 billion, Air Hong Kong at HK$3.48 billion, Cathay Pacific generating HK$90.85 billion, and Airline Services contributing HK$4.50 billion.

Dividend Yield: 5.1%

Cathay Pacific Airways' dividend payments are well-covered by earnings (payout ratio: 47.8%) and cash flows (cash payout ratio: 25%), though the yield of 5.07% is low compared to top dividend payers in Hong Kong. The company has a volatile dividend history but recently declared an interim dividend of HKD 0.20 per share for H1 2024. Despite trading at good value, analysts forecast a decline in earnings over the next three years.

• Click to explore a detailed breakdown of our findings in Cathay Pacific Airways' dividend report.
• The analysis detailed in our Cathay Pacific Airways valuation report hints at an deflated share price compared to its estimated value.

Seize The Opportunity

• Unlock our comprehensive list of 73 Top SEHK Dividend Stocks by clicking here.
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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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