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Exploring Dividend Stocks In Hong Kong Including Three Noteworthy Picks

The Hong Kong market has recently been experiencing some turbulence, with the Hang Seng Index ending nearly flat last week due to concerns about a slowing recovery. Amid these uncertain times, dividend stocks can provide a steady income stream for investors. Given the current market conditions, it is crucial to consider stocks with strong fundamentals and consistent dividend payouts. This can offer a degree of stability and potential for long-term growth in an otherwise volatile environment.

Top 10 Dividend Stocks In Hong Kong

Name

Dividend Yield

Dividend Rating

Chongqing Rural Commercial Bank (SEHK:3618)

9.54%

★★★★★★

China Construction Bank (SEHK:939)

9.09%

★★★★★★

CITIC Telecom International Holdings (SEHK:1883)

10.00%

★★★★★★

Bank of Communications (SEHK:3328)

7.86%

★★★★★☆

China Mobile (SEHK:941)

7.09%

★★★★★☆

Sinopharm Group (SEHK:1099)

4.82%

★★★★★☆

Playmates Toys (SEHK:869)

9.84%

★★★★★☆

Bank of China (SEHK:3988)

7.89%

★★★★★☆

Zhejiang Expressway (SEHK:576)

6.91%

★★★★★☆

International Housewares Retail (SEHK:1373)

8.62%

★★★★★☆

Click here to see the full list of 81 stocks from our Top Dividend Stocks screener.

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Below we spotlight a couple of our favorites from our exclusive screener.

Chongqing Rural Commercial Bank

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

Overview: Chongqing Rural Commercial Bank Co., Ltd. is a prominent banking institution in the People's Republic of China, offering a comprehensive range of services through its subsidiaries, and currently holds a market capitalization of approximately HK$52.77 billion.

Operations: Chongqing Rural Commercial Bank Co., Ltd. generates its revenue primarily from three segments: Personal Banking, which brings in CN¥8.74 billion, Corporate Banking with CN¥8.24 billion, and Financial Market Operations contributing CN¥4.98 billion.

Dividend Yield: 9.5%

Chongqing Rural Commercial Bank's earnings are forecast to grow 6.9% per year, with dividends currently covered by earnings (30.7%) and projected to remain so in three years (29.4%). The bank pays a high and reliable dividend of 9.54%, ranking in the top 25% of Hong Kong dividend payers. With a stable track record over the past decade, its dividends have increased and are well-covered by earnings due to its low payout ratio (30.7%). Recently, the bank proposed a final dividend of RMB 0.2885 per share for 2023.

SEHK:3618 Dividend History as at Apr 2024
SEHK:3618 Dividend History as at Apr 2024

China Construction Bank

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

Overview: China Construction Bank Corporation, with a market cap of HK$1.23 trillion, offers a range of banking and related financial services to both individual and corporate clients within the People's Republic of China and across the globe.

Operations: China Construction Bank Corporation, a global financial institution with a significant presence in the People's Republic of China, generates revenue from several key segments. These include Corporate Finance Business at CN¥161.40 billion, Personal Financial Business at CN¥306.14 billion, and Treasury and Asset Management Business at CN¥130.29 billion.

Dividend Yield: 9.1%

China Construction Bank's earnings have grown by 6.3% per year over the past five years and are forecast to grow by 3.75% per year. Its dividend yield of 9.09% is in the top tier of Hong Kong market, and its dividends have been stable for the past decade, with a payout ratio of 30.5%. The bank recently proposed a final dividend of RMB 0.4 per share for the year ended December 2023, indicating continued commitment to rewarding shareholders through dividends.

SEHK:939 Dividend History as at Apr 2024
SEHK:939 Dividend History as at Apr 2024

CITIC Telecom International Holdings

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

Overview: CITIC Telecom International Holdings Limited is a global investment holding company that provides international telecommunications services, with a market capitalization of approximately HK$9.51 billion.

Operations: CITIC Telecom International Holdings Limited, a global investment holding company with a market capitalization of around HK$9.51 billion, specializes in offering international telecommunications services across the globe. However, detailed revenue segments for the firm are currently not provided.

Dividend Yield: 10%

CITIC Telecom International Holdings' earnings, with a growth of 6.4% per year over the past five years, are forecast to grow by 2.09% annually. The firm offers a high and reliable dividend yield of 10%, ranking in the top quartile of Hong Kong market payers. Dividend payments have been consistent for the past decade, supported by a payout ratio of 76%. Recently, it proposed an HKD 0.193 per share final dividend for the year ended December 2023, demonstrating its dedication to shareholder returns.

SEHK:1883 Dividend History as at Apr 2024
SEHK:1883 Dividend History as at Apr 2024

Key Takeaways

  • Click this link to deep-dive into the 81 companies within our Top Dividend Stocks screener.

  • Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.

  • Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Curious About Other Options?

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:3618SEHK:939SEHK:1883

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