3 Top SEHK Dividend Stocks Yielding Up To 9.6%

As the Hong Kong market navigates through a period of mixed economic signals and cautious investor sentiment, dividend stocks continue to attract attention for their potential to provide stable income. In this environment, selecting stocks with strong fundamentals and consistent dividend payouts can be particularly appealing for investors seeking reliable returns amidst uncertainty.

Top 10 Dividend Stocks In Hong Kong

Name	Dividend Yield	Dividend Rating
Chongqing Rural Commercial Bank (SEHK:3618)	8.35%	★★★★★★
China Construction Bank (SEHK:939)	7.97%	★★★★★☆
Sinopharm Group (SEHK:1099)	5.26%	★★★★★☆
Zhongsheng Group Holdings (SEHK:881)	8.90%	★★★★★☆
S.A.S. Dragon Holdings (SEHK:1184)	8.75%	★★★★★☆
Bank of China (SEHK:3988)	7.34%	★★★★★☆
PC Partner Group (SEHK:1263)	8.95%	★★★★★☆
Zhejiang Expressway (SEHK:576)	7.00%	★★★★★☆
China Electronics Huada Technology (SEHK:85)	9.72%	★★★★★☆
Tian An China Investments (SEHK:28)	5.01%	★★★★★☆

Click here to see the full list of 75 stocks from our Top SEHK Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

China Mengniu Dairy (SEHK:2319)

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

Overview: China Mengniu Dairy Company Limited is an investment holding company that manufactures and distributes dairy products under the MENGNIU brand in China and internationally, with a market cap of HK$52.26 billion.

Operations: China Mengniu Dairy Company Limited's revenue segments include CN¥77.79 billion from the Liquid Milk Business, CN¥5.15 billion from the Ice Cream Business, CN¥4.23 billion from the Cheese Business, and CN¥3.56 billion from the Milk Formula Business.

Dividend Yield: 4%

China Mengniu Dairy's dividend payments are well covered by earnings and cash flows, with payout ratios of 45.4% and 44.8%, respectively. However, the dividends have been volatile over the past decade. The company recently announced a share repurchase program worth HK$2 billion, which may enhance earnings per share. Despite a recent drop in sales and net income for H1 2024, the company approved an interim dividend payment in June 2024.

• Navigate through the intricacies of China Mengniu Dairy with our comprehensive dividend report here.
• Upon reviewing our latest valuation report, China Mengniu Dairy's share price might be too pessimistic.

Sinotrans (SEHK:598)

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

Overview: Sinotrans Limited provides integrated logistics services primarily in the People’s Republic of China and has a market cap of HK$33.88 billion.

Operations: Sinotrans Limited's revenue segments include freight forwarding (CN¥50.21 billion), logistics (CN¥10.35 billion), and e-commerce (CN¥2.47 billion).

Dividend Yield: 9%

Sinotrans Limited reported H1 2024 sales of CNY 56.37 billion, up from CNY 48.10 billion a year ago, but net income dropped to CNY 1.95 billion from CNY 2.19 billion. The company declared an interim dividend of RMB 0.145 per share despite volatile dividends over the past decade and high cash payout ratios indicating unsustainable dividends long-term. Recent board changes include appointing Mr. Yang Guofeng as a non-executive director to enhance corporate governance and sustainability strategy integration.

• Delve into the full analysis dividend report here for a deeper understanding of Sinotrans.
• In light of our recent valuation report, it seems possible that Sinotrans is trading behind its estimated value.

Xinyi Glass Holdings (SEHK:868)

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

Overview: Xinyi Glass Holdings Limited, an investment holding company with a market cap of HK$29.83 billion, produces and sells automobile, construction, float, and other glass products for commercial and industrial applications.

Operations: Xinyi Glass Holdings Limited generates revenue from float glass (HK$20.30 billion), automobile glass (HK$6.25 billion), and architectural glass (HK$3.30 billion).

Dividend Yield: 9.6%

Xinyi Glass Holdings declared an interim dividend of HK$0.31 per share for H1 2024, payable on 16 October 2024, with a scrip option available. Despite a high cash payout ratio of 157.1%, dividends are covered by earnings due to a low payout ratio of 48.1%. The company's net income rose to HK$2.73 billion from HK$2.15 billion year-on-year, though sales decreased slightly to HK$11.81 billion from HK$12.62 billion in the same period last year.

• Click here and access our complete dividend analysis report to understand the dynamics of Xinyi Glass Holdings.
• Our comprehensive valuation report raises the possibility that Xinyi Glass Holdings is priced lower than what may be justified by its financials.

Seize The Opportunity

• Discover the full array of 75 Top SEHK Dividend Stocks right here.
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Searching for a Fresh Perspective?

• 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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