The Hong Kong stock market has recently shown signs of vitality, with a 4.9% uptick in the past week, although it remains 14% lower compared to last year. With earnings projected to grow by 13% annually, investors may find reassurance in stocks that not only withstand market fluctuations but also provide consistent dividend payouts.
Top 10 Dividend Stocks In Hong Kong
Name
Dividend Yield
Dividend Rating
China Medical System Holdings (SEHK:867)
4.74%
★★★★★☆
Sinopharm Group (SEHK:1099)
3.95%
★★★★★☆
Fu Shou Yuan International Group (SEHK:1448)
3.33%
★★★★★☆
Industrial and Commercial Bank of China (SEHK:1398)
Overview: Far East Horizon Limited is a diversified financial services provider operating primarily in Mainland China and Hong Kong, with an international presence and a market capitalization of approximately HK$26.37 billion.
Operations: Far East Horizon Limited generates its revenue primarily through financial, lease, and advisory services which contributed CN¥32.42 billion, and industrial operation and management activities accounting for CN¥5.34 billion.
Dividend Yield: 7.6%
Far East Horizon (SEHK:3360) presents a mixed picture for dividend investors. The company has demonstrated an ability to grow earnings, averaging an 11.5% increase annually over the past five years, and its net profit margins have improved slightly in the last year. Dividend payments are supported by earnings with a modest payout ratio of 28.5%, and cash flows seem adequate with a cash payout ratio of 71%. However, concerns arise from its high debt levels, with a net debt to equity ratio at 433.3%, and operating cash flow not sufficiently covering this debt load. While dividends have been reliable and growing over the past decade, the current yield is below that of top dividend payers in Hong Kong's market.
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Overview: Sinopharm Group Co. Ltd. is a leading distributor of pharmaceuticals, medical devices, and healthcare products in the People's Republic of China, with a market capitalization of approximately HK$70.37 billion.
Operations: Sinopharm Group Co. Ltd. generates its revenue primarily from the wholesale and retail sales of pharmaceuticals, medical devices, and healthcare products within China.
Dividend Yield: 4%
Sinopharm Group (SEHK:1099) appears to be a prudent choice for dividend seekers, with its debt becoming more manageable over time, evidenced by a declining debt to equity ratio. The company's earnings have consistently grown, surpassing its five-year average this past year. Dividends seem sustainable due to low payout ratios and are well-supported by both earnings and cash flow, with a history of reliability and growth over the past decade. However, investors should note that Sinopharm's dividend yield is modest when compared to the higher echelons of Hong Kong's market dividend payers, and its operating cash flow does not cover debt as robustly as one might prefer.
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Overview: Tian An China Investments Company Limited is an investment holding firm that specializes in investing, developing, and managing properties across the People's Republic of China, Hong Kong, the United Kingdom, and Australia, with a market capitalization of approximately HK$5.13 billion.
Operations: Tian An China Investments Company Limited generates revenue primarily through property development, which contributed HK$4.58 billion, and property investment, with earnings of HK$575 million.
Dividend Yield: 7.1%
Tian An China Investments (SEHK:28) offers a nuanced picture for dividend investors. The firm has seen its debt to equity ratio rise modestly over five years, but maintains a satisfactory net debt position. Earnings have grown steadily, outpacing the five-year average recently, and dividends are well-protected by both earnings and cash flows, with a history of consistent growth and stability over the past decade. However, Tian An's current profit margins have dipped from last year's high, and its dividend yield isn't among the market's top tier. This suggests that while dividends appear secure and growing, there are aspects that may not align with all investor appetites for yield or profit margin performance.
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.
