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Dividend-paying stocks are often sought after for their potential to provide a reliable source of income. However, not all dividend stocks are equally promising. For example, Chongqing Machinery & Electric has seen its dividend decline over time, raising concerns about the sustainability of its payouts and the overall health of the company. This makes it crucial to scrutinize whether a stock's dividend history indicates financial robustness or potential red flags.
Top 10 Dividend Stocks In Hong Kong
| Name | Dividend Yield | Dividend Rating |
| China Construction Bank (SEHK:939) | 8.02% | ★★★★★★ |
| Chongqing Rural Commercial Bank (SEHK:3618) | 8.01% | ★★★★★★ |
| CITIC Telecom International Holdings (SEHK:1883) | 9.41% | ★★★★★★ |
| Lenovo Group (SEHK:992) | 3.43% | ★★★★★☆ |
| S.A.S. Dragon Holdings (SEHK:1184) | 8.97% | ★★★★★☆ |
| China Electronics Huada Technology (SEHK:85) | 8.20% | ★★★★★☆ |
| International Housewares Retail (SEHK:1373) | 9.18% | ★★★★★☆ |
| Bank of China (SEHK:3988) | 6.69% | ★★★★★☆ |
| China Mobile (SEHK:941) | 6.22% | ★★★★★☆ |
| Sinopharm Group (SEHK:1099) | 4.31% | ★★★★★☆ |
Click here to see the full list of 89 stocks from our Top Dividend Stocks screener.
Let's review one of the notable picks from our screened stocks and one not so great.
Top Pick
Best Pacific International Holdings
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Best Pacific International Holdings Limited operates in manufacturing, trading, and selling elastic fabric, elastic webbing, and lace with a market capitalization of approximately HK$2.62 billion.
Operations: The company generates revenue primarily through two segments: HK$834.34 million from elastic webbing and HK$3.37 billion from elastic fabric and lace.
Dividend Yield: 6.6%
Best Pacific International Holdings has demonstrated a consistent ability to increase its dividend, with a recent declaration of a final dividend of HK$0.1138 per share for the year ended 31 December 2023, reflecting positive growth. Despite some volatility in dividend payments over the last decade, the company maintains a healthy coverage with a payout ratio of 50% and cash payout ratio of 23.9%. However, its current yield at 6.62% is below Hong Kong's top dividend payers' average.
One To Reconsider
Chongqing Machinery & Electric
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: Chongqing Machinery & Electric Co., Ltd. focuses on designing, manufacturing, and selling clean energy equipment and high-end smart manufacturing equipment, with a market capitalization of approximately HK$1.99 billion.