Exploring Top Dividend Stocks In Hong Kong For May 2024

As of May 2024, the Hong Kong market has shown resilience with the Hang Seng Index gaining 3.11%, reflecting a positive sentiment among investors despite broader global economic uncertainties. This backdrop creates an interesting scenario for dividend-seeking investors, as stable, high-yield stocks could be particularly appealing in such an environment where steady returns are prized amidst fluctuating markets.

Top 10 Dividend Stocks In Hong Kong

Name	Dividend Yield	Dividend Rating
Chongqing Rural Commercial Bank (SEHK:3618)	8.24%	★★★★★★
CITIC Telecom International Holdings (SEHK:1883)	8.88%	★★★★★★
Consun Pharmaceutical Group (SEHK:1681)	8.57%	★★★★★☆
China Electronics Huada Technology (SEHK:85)	7.50%	★★★★★☆
Playmates Toys (SEHK:869)	8.70%	★★★★★☆
S.A.S. Dragon Holdings (SEHK:1184)	8.54%	★★★★★☆
Bank of China (SEHK:3988)	6.62%	★★★★★☆
China Mobile (SEHK:941)	6.46%	★★★★★☆
Sinopharm Group (SEHK:1099)	4.03%	★★★★★☆
International Housewares Retail (SEHK:1373)	8.48%	★★★★★☆

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

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

Financial Street Property (SEHK:1502)

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

Overview: Financial Street Property Co., Limited operates in property management and related services across the People’s Republic of China, with a market capitalization of approximately HK$0.94 billion.

Operations: Financial Street Property Co., Limited generates revenue primarily from its provision of property management and related services, totaling CN¥1.51 billion.

Dividend Yield: 7.4%

Financial Street Property Co., Limited, with a Price-To-Earnings ratio of 6.8x, offers a dividend yield in the top 25% for Hong Kong at 7.42%. Despite recent earnings growth of 5.8% and revenue forecast to grow annually by 11.19%, the company has an unstable dividend track record and unreliable payments over the past three years. The proposed final dividend is RMB 0.173 per share for fiscal year 2023, supported by a payout ratio of 50.4% and cash payout ratio of 54.6%, indicating that dividends are well-covered by both earnings and cash flows.

• Click to explore a detailed breakdown of our findings in Financial Street Property's dividend report.
• Insights from our recent valuation report point to the potential overvaluation of Financial Street Property shares in the market.

Precision Tsugami (China) (SEHK:1651)

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

Overview: Precision Tsugami (China) Corporation Limited is an investment holding company that specializes in manufacturing and selling computer numerical control machine tools, primarily serving Mainland China and international markets, with a market capitalization of approximately HK$3.88 billion.

Operations: Precision Tsugami (China) generates revenue predominantly through the manufacture and sale of CNC high precision machine tools, totaling CN¥3.34 billion.

Dividend Yield: 7.7%

Precision Tsugami (China) Corporation Limited, despite a short history of dividend payments spanning 6 years, offers a compelling yield of 7.7%, ranking in the top quartile of Hong Kong dividend payers. The dividends are supported by a payout ratio of 54.1% and a cash payout ratio at 35.3%, indicating reasonable coverage by both earnings and cash flows. However, the company's dividend track record is not yet proven over an extended period, reflecting potential risks in sustainability despite current stability.

• Navigate through the intricacies of Precision Tsugami (China) with our comprehensive dividend report here.
• Our comprehensive valuation report raises the possibility that Precision Tsugami (China) is priced lower than what may be justified by its financials.

Johnson Electric Holdings (SEHK:179)

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

Overview: Johnson Electric Holdings Limited is an investment holding company that manufactures and sells motion systems across various regions including Germany, the Czech Republic, France, North America, China, other parts of Asia, and South America, with a market capitalization of HK$11.65 billion.

Operations: Johnson Electric Holdings Limited generates its revenue from the manufacturing and sale of motion systems across key global markets, including Germany, the Czech Republic, France, North America, China, and other parts of Asia and South America.

Dividend Yield: 4%

Johnson Electric Holdings Limited, with a P/E ratio of 6.5x, sits below the Hong Kong market average. Its dividends, growing over the past decade and supported by a payout ratio of 17.8% and a cash payout ratio of 15.2%, show coverage by both earnings and cash flows. However, its dividend yield at 4.04% is lower compared to top Hong Kong dividend payers, and its track record reveals some volatility in payments over the last ten years despite recent earnings growth of 45.3%.

• Take a closer look at Johnson Electric Holdings' potential here in our dividend report.
• According our valuation report, there's an indication that Johnson Electric Holdings' share price might be on the cheaper side.

Taking Advantage

• Delve into our full catalog of 88 Top Dividend Stocks here.
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Searching for a Fresh Perspective?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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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