Kunlun Energy Leads These 3 SEHK Dividend Stocks

As global markets navigate a complex landscape with varying economic indicators, the Hong Kong market presents its own set of challenges and opportunities, highlighted by recent fluctuations in the Hang Seng Index. In this environment, dividend stocks like Kunlun Energy stand out for their potential to provide steady income streams amidst broader market volatility.

Top 10 Dividend Stocks In Hong Kong

Name	Dividend Yield	Dividend Rating
China Hongqiao Group (SEHK:1378)	8.29%	★★★★★☆
Chongqing Rural Commercial Bank (SEHK:3618)	7.06%	★★★★★☆
Bank of China (SEHK:3988)	6.96%	★★★★★☆
Playmates Toys (SEHK:869)	8.70%	★★★★★☆
China Construction Bank (SEHK:939)	7.00%	★★★★★☆
PC Partner Group (SEHK:1263)	8.46%	★★★★★☆
Tianjin Development Holdings (SEHK:882)	6.92%	★★★★★☆
China Mobile (SEHK:941)	6.56%	★★★★★☆
Sinopharm Group (SEHK:1099)	4.69%	★★★★★☆
Tian An China Investments (SEHK:28)	5.06%	★★★★★☆

Click here to see the full list of 93 stocks from our Top SEHK Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Kunlun Energy (SEHK:135)

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

Overview: Kunlun Energy Company Limited is an investment holding company involved in the exploration, development, production, and sale of crude oil and natural gas, with a market cap of approximately HK$69.18 billion.

Operations: Kunlun Energy's revenue segments include CN¥25.97 billion from LPG sales, CN¥0.39 billion from exploration and production, CN¥12.64 billion from LNG processing and terminal operations, and CN¥149.69 billion from natural gas sales excluding LPG.

Dividend Yield: 4.5%

Kunlun Energy's interim dividend of RMB 0.1641 per share reflects its commitment to shareholder returns, despite a volatile dividend history over the past decade. The company's dividends are well-covered by both earnings and cash flows, with payout ratios at 67.3% and 37.8%, respectively. While trading below fair value, Kunlun's recent earnings growth and stable cash flow coverage suggest potential for sustained dividends, though its yield remains lower than top-tier Hong Kong dividend payers.

• Take a closer look at Kunlun Energy's potential here in our dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Kunlun Energy shares in the market.

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$65.17 billion.

Operations: ENN Energy Holdings Limited generates revenue through several segments, including CN¥67.73 billion from Retail Gas Sales Business, CN¥40.99 billion from Wholesale of Gas, CN¥15.95 billion from Integrated Energy Business, CN¥7.74 billion from Value Added Business, and CN¥5.58 billion from Construction and Installation.

Dividend Yield: 5%

ENN Energy Holdings has maintained stable and growing dividends over the past decade, although its current dividend yield of 5.03% is below Hong Kong's top-tier payers. Despite a low payout ratio of 49.9%, indicating earnings coverage, the high cash payout ratio of 114.2% suggests dividends are not well-covered by free cash flow, raising sustainability concerns. Recent interim dividend increase to HKD 0.65 per share underscores ongoing shareholder returns amid fluctuating net income figures.

• Click here to discover the nuances of ENN Energy Holdings with our detailed analytical dividend report.
• Our expertly prepared valuation report ENN Energy Holdings implies its share price may be lower than expected.

Sinotrans (SEHK:598)

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

Overview: Sinotrans Limited offers integrated logistics services mainly in the People’s Republic of China and has a market capitalization of HK$38.47 billion.

Operations: Sinotrans Limited generates revenue from its E-Commerce Business (CN¥16.26 billion), Professional Logistics (CN¥28.48 billion), and Forwarding and Related Business (CN¥74.34 billion).

Dividend Yield: 8%

Sinotrans offers an attractive dividend yield of 8.04%, ranking among the top 25% in Hong Kong, but its dividends have been volatile over the past decade. Despite a reasonable payout ratio of 52.8%, indicating earnings coverage, the high cash payout ratio suggests sustainability issues. Recent buyback plans worth CNY 542 million aim to bolster investor confidence and potentially stabilize share value, though dividends remain not well-covered by free cash flows.

• Unlock comprehensive insights into our analysis of Sinotrans stock in this dividend report.
• The valuation report we've compiled suggests that Sinotrans' current price could be quite moderate.

Where To Now?

• Reveal the 93 hidden gems among our Top SEHK Dividend Stocks screener with a single click here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Looking For Alternative Opportunities?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com