Stock Analysis
As global markets navigate through volatility and economic uncertainties, the Hong Kong market has shown resilience, with the Hang Seng Index gaining 0.85% amidst broader concerns about deflationary pressures in China. In this environment, dividend stocks can offer a measure of stability and income potential for investors seeking to mitigate risk. A good dividend stock typically combines a strong financial foundation with consistent payout history, making it an appealing choice during periods of market fluctuation and economic unpredictability.
Top 10 Dividend Stocks In Hong Kong
| Name | Dividend Yield | Dividend Rating |
| Luk Fook Holdings (International) (SEHK:590) | 9.29% | ★★★★★☆ |
| China Construction Bank (SEHK:939) | 7.86% | ★★★★★☆ |
| Chow Tai Fook Jewellery Group (SEHK:1929) | 8.44% | ★★★★★☆ |
| China Overseas Grand Oceans Group (SEHK:81) | 9.95% | ★★★★★☆ |
| China Electronics Huada Technology (SEHK:85) | 9.46% | ★★★★★☆ |
| S.A.S. Dragon Holdings (SEHK:1184) | 9.23% | ★★★★★☆ |
| Chongqing Rural Commercial Bank (SEHK:3618) | 8.27% | ★★★★★☆ |
| Bank of China (SEHK:3988) | 7.54% | ★★★★★☆ |
| Sinopharm Group (SEHK:1099) | 4.67% | ★★★★★☆ |
| Tian An China Investments (SEHK:28) | 4.96% | ★★★★★☆ |
Click here to see the full list of 85 stocks from our Top SEHK Dividend Stocks screener.
We're going to check out a few of the best picks from our screener tool.
ENN Energy Holdings (SEHK:2688)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: ENN Energy Holdings Limited is an investment holding company that focuses on the investment, construction, operation, and management of gas pipeline infrastructure in the People’s Republic of China with a market cap of HK$61.85 billion.
Operations: ENN Energy Holdings Limited generates revenue primarily from Retail Gas Sales Business (CN¥68.51 billion), Wholesale of Gas (CN¥40.59 billion), Integrated Energy Business (CN¥14.66 billion), Value Added Business (CN¥7.94 billion), and Construction and Installation services (CN¥6.58 billion).
Dividend Yield: 5.3%
ENN Energy Holdings declared a final dividend of HK$2.31 per share for 2023, reflecting stable and growing dividend payments over the past decade. Despite a low payout ratio of 44.4%, its cash payout ratio is high at 106%, indicating dividends are not well covered by free cash flows. The current yield of 5.3% is below the top quartile in Hong Kong, but the stock trades at good value compared to peers and industry standards.
- Click here to discover the nuances of ENN Energy Holdings with our detailed analytical dividend report.
- According our valuation report, there's an indication that ENN Energy Holdings' share price might be on the cheaper side.
JNBY Design (SEHK:3306)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: JNBY Design Limited, with a market cap of HK$6.57 billion, operates in the design, marketing, retail, and sale of fashion apparel, accessory products, and household goods both in China and internationally.
Operations: JNBY Design Limited's revenue segments include Mature Brand (CN¥2.84 billion), Younger Brands (CN¥2.15 billion), and Emerging Brands (CN¥90.80 million).
Dividend Yield: 8.4%
JNBY Design's dividend yield of 8.38% places it in the top 25% of dividend payers in Hong Kong. Despite a reasonable payout ratio of 64.2% and a low cash payout ratio of 34.3%, indicating dividends are covered by earnings and cash flows, the company has only paid dividends for seven years with an unstable track record. Earnings grew by 69.2% last year, and analysts expect further growth, suggesting potential for future dividend stability.
- Click here and access our complete dividend analysis report to understand the dynamics of JNBY Design.
- The analysis detailed in our JNBY Design valuation report hints at an deflated share price compared to its estimated value.
China Electronics Huada Technology (SEHK:85)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: China Electronics Huada Technology Company Limited, with a market cap of HK$2.25 billion, focuses on the design, development, and sale of integrated circuit chips in the People’s Republic of China.
Operations: China Electronics Huada Technology Company Limited generated HK$3.02 billion in revenue from the design and sale of integrated circuit chips.
Dividend Yield: 9.5%
China Electronics Huada Technology's dividend yield of 9.46% ranks it in the top 25% of Hong Kong dividend payers. With a payout ratio of 31.1% and cash payout ratio of 26.5%, dividends are well covered by earnings and cash flows, despite a volatile track record over the past decade. Recent approval of a HK$0.105 per share dividend for FY2023 highlights its commitment to shareholder returns, though recent revenue declines could impact future payouts.
- Take a closer look at China Electronics Huada Technology's potential here in our dividend report.
- Our comprehensive valuation report raises the possibility that China Electronics Huada Technology is priced lower than what may be justified by its financials.
Where To Now?
- Click here to access our complete index of 85 Top SEHK Dividend Stocks.
- Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
- Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.
Seeking Other Investments?
- 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.
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
About SEHK:3306
JNBY Design
Engages in the design, marketing, retail, and sale of fashion apparels, accessory products, and household goods in the People’s Republic of China and internationally.
