In This Article:
Dividend growth is a key indicator of a company's financial health and its ability to provide sustainable returns to investors. However, not every firm manages to maintain or increase its dividends over time, which can be a red flag for those relying on dividend income. In this context, we will examine two contrasting examples from the Hong Kong market: one that has seen declining dividends, such as Lee & Man Paper Manufacturing, and another that presents a more stable dividend outlook.
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% | ★★★★★★ |
| China Construction Bank (SEHK:939) | 7.45% | ★★★★★☆ |
| S.A.S. Dragon Holdings (SEHK:1184) | 8.86% | ★★★★★☆ |
| China Electronics Huada Technology (SEHK:85) | 8.33% | ★★★★★☆ |
| Playmates Toys (SEHK:869) | 8.96% | ★★★★★☆ |
| Bank of China (SEHK:3988) | 6.60% | ★★★★★☆ |
| China Mobile (SEHK:941) | 6.21% | ★★★★★☆ |
| Sinopharm Group (SEHK:1099) | 4.24% | ★★★★★☆ |
| China Overseas Grand Oceans Group (SEHK:81) | 8.09% | ★★★★★☆ |
Click here to see the full list of 86 stocks from our Top Dividend Stocks screener.
We're going to check out one of the best picks from our screener tool and one that could be a dividend trap.
Top Pick
China Unicom (Hong Kong)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: China Unicom (Hong Kong) Limited operates as a telecommunications provider offering a variety of services in the People's Republic of China, with a market capitalization of approximately HK$219.39 billion.
Operations: The company generates revenue primarily from wireless communications services, totaling CN¥374.87 billion.
Dividend Yield: 5%
China Unicom (Hong Kong) Limited, despite a volatile dividend history, recently declared an increased final dividend of RMB 0.1336 per share for the year ended December 31, 2023. This contrasts with some peers experiencing declining dividends. The company's dividends are supported by earnings and cash flows, with a payout ratio of 55% and a cash payout ratio of 44.7%, indicating sustainability in its distributions to shareholders. While its dividend yield is below the top tier in Hong Kong's market at 5.05%, recent enhancements suggest an improving outlook on shareholder returns.
One To Reconsider
Lee & Man Paper Manufacturing
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: Lee & Man Paper Manufacturing Limited operates as an investment holding company that manufactures and trades packaging papers, pulps, and tissue papers across the People’s Republic of China, Vietnam, Malaysia, Macau, and Hong Kong, with a market capitalization of approximately HK$9.92 billion.