The Hong Kong market has shown resilience amid global economic uncertainties, with the Hang Seng Index recently posting a 1.99% gain. As investors navigate these fluctuating conditions, dividend stocks yielding over 6% can offer a reliable income stream and potential portfolio stability.

Top 10 Dividend Stocks In Hong Kong

Click here to see the full list of 83 stocks from our Top SEHK Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Bank of China

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

Overview: Bank of China Limited, with a market cap of HK$1.44 trillion, offers a range of banking and financial services across Mainland China, Hong Kong, Macao, Taiwan, and internationally through its subsidiaries.

Operations: The revenue segments for Bank of China Limited encompass various banking and financial services provided across Mainland China, Hong Kong, Macao, Taiwan, and internationally.

Dividend Yield: 7.2%

Bank of China offers a stable dividend with a current yield of 7.2%, though it is lower than the top 25% in Hong Kong. The payout ratio is low at 32.6%, indicating dividends are well covered by earnings and forecasted to remain sustainable over the next three years. Recent board approvals for preferred dividend distributions and numerous fixed-income offerings, including $800 million in senior unsecured notes, reflect ongoing financial stability and liquidity management.

• Navigate through the intricacies of Bank of China with our comprehensive dividend report here.

• Our valuation report here indicates Bank of China may be undervalued.

China Medical System Holdings

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

Overview: China Medical System Holdings Limited is an investment holding company that manufactures, sells, markets, and promotes pharmaceutical products in the People’s Republic of China with a market cap of HK$17.56 billion.

Operations: China Medical System Holdings Limited generates CN¥7.01 billion in revenue from the marketing, promotion, sales, and manufacturing of pharmaceutical products in the People’s Republic of China.

Dividend Yield: 6%

China Medical System Holdings' recent interim dividend decrease to HKD0.164 per share reflects a challenging period, with sales dropping to CNY3.61 billion and net income halving to CNY910.43 million for H1 2024. Despite a low payout ratio of 40.3%, indicating dividends are well covered by earnings, the dividend yield remains below top-tier levels in Hong Kong. Notably, the company has an unstable dividend history, which could concern long-term investors seeking reliable income streams.

• Click here to discover the nuances of China Medical System Holdings with our detailed analytical dividend report.

• Our valuation report unveils the possibility China Medical System Holdings' shares may be trading at a discount.

China CITIC Bank

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

Overview: China CITIC Bank Corporation Limited offers a range of banking products and services in China and internationally, with a market cap of HK$350.18 billion.

Operations: China CITIC Bank Corporation Limited generates revenue from corporate banking, personal banking, and treasury operations, with amounts in millions of CN¥.

Dividend Yield: 7.3%

China CITIC Bank's dividend payments, covered by a low payout ratio of 25.6%, have increased over the past decade but remain volatile and unreliable. The recent approval of a final ordinary dividend at RMB 3.261 per 10 shares for FY2023 indicates commitment to shareholder returns, despite historical instability. Trading significantly below fair value and with forecasted earnings growth of 7.09% annually, the bank presents a mixed picture for dividend stability but offers potential value for investors.

• Click to explore a detailed breakdown of our findings in China CITIC Bank's dividend report.

• Upon reviewing our latest valuation report, China CITIC Bank's share price might be too pessimistic.

Taking Advantage

• Take a closer look at our Top SEHK Dividend Stocks list of 83 companies by clicking here.

• 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.

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Ready To Venture Into Other Investment Styles?

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• 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.

Companies discussed in this article include SEHK:3988 SEHK:867 and SEHK:998.

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