Advertisement
Singapore markets open in 7 hours 55 minutes
  • Straits Times Index

    3,437.26
    -10.30 (-0.30%)
     
  • S&P 500

    5,557.63
    +52.63 (+0.96%)
     
  • Dow

    40,403.90
    +116.37 (+0.29%)
     
  • Nasdaq

    17,974.62
    +247.69 (+1.40%)
     
  • Bitcoin USD

    67,060.72
    -430.16 (-0.64%)
     
  • CMC Crypto 200

    1,383.25
    -22.08 (-1.57%)
     
  • FTSE 100

    8,198.78
    +43.06 (+0.53%)
     
  • Gold

    2,394.30
    -4.80 (-0.20%)
     
  • Crude Oil

    80.06
    -0.07 (-0.09%)
     
  • 10-Yr Bond

    4.2720
    +0.0330 (+0.78%)
     
  • Nikkei

    39,599.00
    -464.79 (-1.16%)
     
  • Hang Seng

    17,635.88
    +218.20 (+1.25%)
     
  • FTSE Bursa Malaysia

    1,622.07
    -14.48 (-0.88%)
     
  • Jakarta Composite Index

    7,321.98
    +27.48 (+0.38%)
     
  • PSE Index

    6,712.05
    -79.64 (-1.17%)
     

China Telecom Leads Three Key Dividend Stocks In Hong Kong

Amidst a turbulent global backdrop, the Hong Kong market has shown resilience, with investors closely monitoring sectors that promise stable returns. As markets navigate through uncertainties such as interest rate speculations and economic slowdowns, dividend stocks like China Telecom have become a focal point for those seeking reliable investment avenues in Hong Kong.

Top 10 Dividend Stocks In Hong Kong

Name

Dividend Yield

Dividend Rating

Chongqing Rural Commercial Bank (SEHK:3618)

8.10%

★★★★★★

CITIC Telecom International Holdings (SEHK:1883)

9.66%

★★★★★★

Consun Pharmaceutical Group (SEHK:1681)

8.86%

★★★★★☆

China Construction Bank (SEHK:939)

7.38%

★★★★★☆

S.A.S. Dragon Holdings (SEHK:1184)

9.00%

★★★★★☆

China Electronics Huada Technology (SEHK:85)

7.66%

★★★★★☆

Bank of China (SEHK:3988)

6.60%

★★★★★☆

China Mobile (SEHK:941)

6.43%

★★★★★☆

Sinopharm Group (SEHK:1099)

4.13%

★★★★★☆

International Housewares Retail (SEHK:1373)

8.62%

★★★★★☆

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

ADVERTISEMENT

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

China Telecom

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

Overview: China Telecom Corporation Limited operates primarily in the People's Republic of China, offering wireline and mobile telecommunications services through its subsidiaries, with a market capitalization of approximately HK$559.72 billion.

Operations: China Telecom Corporation Limited generates CN¥512.75 billion from its integrated telecommunications business.

Dividend Yield: 5.6%

China Telecom, while trading at 66.9% below its estimated fair value, shows a mixed performance in dividend reliability with a history of volatility over the past decade. Despite this, its dividends are well-covered by both earnings and cash flows, with payout ratios of 68.7% and 52.9%, respectively. However, its dividend yield of 5.64% is lower than the top quartile in Hong Kong's market at 7.45%. Recent corporate changes include the retirement of executive director Mr. Shao Guanglu as announced on May 23, 2024.

SEHK:728 Dividend History as at May 2024
SEHK:728 Dividend History as at May 2024

VSTECS Holdings

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

Overview: VSTECS Holdings Limited operates in North Asia and Southeast Asia, focusing on developing IT product channels and providing technical solution integration services, with a market capitalization of approximately HK$6.98 billion.

Operations: VSTECS Holdings Limited generates revenue primarily through three segments: Cloud Computing (HK$3.08 billion), Enterprise Systems (HK$40.41 billion), and Consumer Electronics (HK$30.39 billion).

Dividend Yield: 5.3%

VSTECS Holdings Limited, despite a lower than average dividend yield of 5.29% compared to Hong Kong's top dividend payers at 7.45%, has shown financial resilience with an increase in net income from HK$823.07 million to HK$922.03 million and a rise in basic EPS from HK$0.5815 to HK$0.6562 year-over-year as of December 2023. The company recently proposed a final dividend of HK$0.257 per share, maintaining its record of increasing dividends despite past volatility and coverage concerns with both earnings and cash flows supporting payouts at ratios of 39.2% and 61.4%, respectively.

SEHK:856 Dividend History as at May 2024
SEHK:856 Dividend History as at May 2024

CNOOC

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

Overview: CNOOC Limited operates as an investment holding company primarily focused on the exploration, development, production, and sale of crude oil and natural gas with a market capitalization of approximately HK$1.01 trillion.

Operations: CNOOC Limited generates its revenue primarily from the exploration, development, production, and sale of crude oil and natural gas.

Dividend Yield: 6%

CNOOC Limited, with a dividend yield of 6.04%, falls below Hong Kong's top quartile average of 7.45%. Despite this, the company has a sustainable payout with a low earnings payout ratio of 41.1% and cash payout ratio at 59.3%. Dividend payments have increased over the past decade but have shown volatility in the same period. Recent significant amendments to corporate communication methods were proposed on May 8, 2024, potentially impacting shareholder engagement and operational flexibility.

SEHK:883 Dividend History as at May 2024
SEHK:883 Dividend History as at May 2024

Make It Happen

Searching for a Fresh Perspective?

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.

Companies discussed in this article include SEHK:728SEHK:856 SEHK:883

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