Best-In-Class SEHK Dividend Stocks

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Dividend-paying companies such as Shenzhen Expressway and NagaCorp can diversify your portfolio cash flow by paying constant and large dividends. These stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. I’ve made a list of other value-adding dividend-paying stocks for you to consider for your investment portfolio.

Shenzhen Expressway Company Limited (SEHK:548)

Shenzhen Expressway Company Limited, together with its subsidiaries, primarily invests in, constructs, operates, and manages toll highways and expressways primarily in the People’s Republic of China. Founded in 1996, and currently headed by CEO Ya De Wu, the company employs 5,254 people and has a market cap of HKD HK$21.27B, putting it in the large-cap category.

548 has a good-sized dividend yield of 3.22% and has a payout ratio of 33.47% , with analysts expecting this ratio in three years to be 44.45%. Despite some volatility in the yield, DPS has risen in the last 10 years from CN¥0.14 to CN¥0.25. Shenzhen Expressway is also reasonably priced, with a PE ratio of 9.6 that compares favorably with the HK Infrastructure average of 9.6. More detail on Shenzhen Expressway here.

SEHK:548 Historical Dividend Yield Mar 12th 18
SEHK:548 Historical Dividend Yield Mar 12th 18

NagaCorp Ltd. (SEHK:3918)

NagaCorp Ltd., an investment holding company, engages in the hotel, gaming, and leisure businesses in the Kingdom of Cambodia. Established in 1995, and run by CEO Lip Keong Chen, the company currently employs 8,618 people and has a market cap of HKD HK$34.60B, putting it in the large-cap stocks category.

3918 has a sizeable dividend yield of 3.46% and is distributing 44.44% of earnings as dividends , with analysts expecting this ratio to be 59.94% in the next three years. While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. More on NagaCorp here.

SEHK:3918 Historical Dividend Yield Mar 12th 18
SEHK:3918 Historical Dividend Yield Mar 12th 18

Kingboard Chemical Holdings Limited (SEHK:148)

Kingboard Chemical Holdings Limited, an investment holding company, manufactures and sells laminates and printed circuit boards. The company now has 43200 employees and with the company’s market capitalisation at HKD HK$40.42B, we can put it in the large-cap group.

148 has a solid dividend yield of 3.43% and pays 23.59% of it’s earnings as dividends , with an expected payout of 27.74% in three years. Dividends per share have increased during the past 10 years, but there have been a couple hiccups. However, they have historically always picked up again. Continue research on Kingboard Chemical Holdings here.