Exploring Dividend Stocks In Hong Kong Including Three Noteworthy Picks

In This Article:

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.

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: ★★★★★★