Discover 3 SEHK Dividend Stocks For Enhanced Income

As global markets navigate through geopolitical tensions and economic uncertainties, Hong Kong's Hang Seng Index has shown resilience with a notable climb of 10.2% in recent weeks. In this dynamic environment, dividend stocks on the Stock Exchange of Hong Kong (SEHK) can offer investors an opportunity to enhance their income streams by focusing on companies with strong fundamentals and consistent dividend payouts.

Top 10 Dividend Stocks In Hong Kong

Name	Dividend Yield	Dividend Rating
China Hongqiao Group (SEHK:1378)	8.63%	★★★★★☆
Chongqing Rural Commercial Bank (SEHK:3618)	7.13%	★★★★★☆
Bank of China (SEHK:3988)	6.85%	★★★★★☆
Playmates Toys (SEHK:869)	8.82%	★★★★★☆
Lion Rock Group (SEHK:1127)	8.09%	★★★★★☆
China Construction Bank (SEHK:939)	7.05%	★★★★★☆
PC Partner Group (SEHK:1263)	7.86%	★★★★★☆
Tianjin Development Holdings (SEHK:882)	6.53%	★★★★★☆
Sinopharm Group (SEHK:1099)	4.05%	★★★★★☆
Zhejiang Expressway (SEHK:576)	4.81%	★★★★★☆

Click here to see the full list of 85 stocks from our Top SEHK Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

Dawnrays Pharmaceutical (Holdings) (SEHK:2348)

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

Overview: Dawnrays Pharmaceutical (Holdings) Limited is an investment holding company that develops, manufactures, and sells non-patented pharmaceutical medicines in Mainland China and internationally, with a market cap of HK$1.86 billion.

Operations: Dawnrays Pharmaceutical (Holdings) Limited generates its revenue primarily from Finished Drugs, amounting to CN¥1.04 billion, and Intermediates and Bulk Medicines, contributing CN¥130.31 million.

Dividend Yield: 5.7%

Dawnrays Pharmaceutical's dividend payments have been volatile over the past decade, yet they are currently covered by both earnings and cash flows, with a low payout ratio of 19.4% indicating sustainability. The recent interim dividend of HK$0.015 per share reflects stability in payouts despite historical volatility. Earnings have improved significantly, with net income rising to CNY 493.05 million for the first half of 2024, but its dividend yield remains below top-tier levels in Hong Kong.

• Take a closer look at Dawnrays Pharmaceutical (Holdings)'s potential here in our dividend report.
• The analysis detailed in our Dawnrays Pharmaceutical (Holdings) valuation report hints at an inflated share price compared to its estimated value.

Huishang Bank (SEHK:3698)

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

Overview: Huishang Bank Corporation Limited, along with its subsidiaries, offers a range of commercial banking products and services in the People’s Republic of China and has a market cap of HK$37.92 billion.

Operations: Huishang Bank Corporation Limited generates revenue through its diverse range of commercial banking products and services in China.

Dividend Yield: 5.9%

Huishang Bank's dividend payments have been volatile over the past decade, with a low payout ratio of 14% indicating they are well-covered by earnings. Despite this coverage, the dividend yield of 5.92% is lower than the top quartile in Hong Kong. Recent financials show net income growth to CNY 8.63 billion for H1 2024, suggesting profitability improvements, although net interest income slightly decreased year-over-year. The bank's dividends are forecasted to remain covered in three years.

• Click here to discover the nuances of Huishang Bank with our detailed analytical dividend report.
• Our comprehensive valuation report raises the possibility that Huishang Bank is priced lower than what may be justified by its financials.

China Unicom (Hong Kong) (SEHK:762)

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

Overview: China Unicom (Hong Kong) Limited is an investment holding company that offers telecommunications and related value-added services in the People’s Republic of China, with a market cap of HK$234.69 billion.

Operations: China Unicom (Hong Kong) Limited generates revenue from its Wireless Communications Services segment, which amounts to CN¥378.11 billion.

Dividend Yield: 4.9%

China Unicom (Hong Kong) offers a dividend yield of 4.86%, below the top quartile in Hong Kong, yet its payouts are sustainable with a 58% earnings payout ratio and 68% cash flow coverage. Despite a history of unstable dividends, recent increases and solid earnings growth—10.7% over the past year—indicate potential for future stability. Recent executive changes and strong operational metrics, including substantial subscriber growth, highlight ongoing strategic developments amidst governance challenges.

• Get an in-depth perspective on China Unicom (Hong Kong)'s performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of China Unicom (Hong Kong) shares in the market.

Summing It All Up

• Click here to access our complete index of 85 Top SEHK Dividend Stocks.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

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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