As global markets react to anticipated interest rate cuts and economic data, the Hong Kong market has experienced its own fluctuations, with the Hang Seng Index showing resilience amid broader uncertainties. In this context, dividend stocks in Hong Kong offer a compelling option for investors seeking stable returns. A good dividend stock typically combines a strong yield with consistent payouts and solid financial health, making it an attractive choice in today's market environment.

Top 10 Dividend Stocks In Hong Kong

Click here to see the full list of 79 stocks from our Top SEHK Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

S.A.S. Dragon Holdings

Simply Wall St Dividend Rating: ★★★★★☆

Overview: S.A.S. Dragon Holdings Limited is an investment holding company that distributes electronic components and semiconductor products across various regions including Hong Kong, Mainland China, Taiwan, the USA, Vietnam, Singapore, Macao and internationally with a market cap of HK$2.50 billion.

Operations: S.A.S. Dragon Holdings Limited generates HK$26.73 billion in revenue from the distribution of electronic components and semiconductor products across multiple regions.

Dividend Yield: 8.7%

S.A.S. Dragon Holdings has shown volatility in its dividend payments over the past decade, reflecting an unstable track record. However, recent financials indicate solid earnings growth of 24.7% and a reasonable payout ratio of 54.1%, suggesting dividends are well-covered by earnings and cash flows (21.2%). Notably, the company announced an interim dividend of HK$0.15 per share for H1 2024, with strong sales growth to HK$13.64 billion and net income rising to HK$330.29 million from HK$271.35 million year-on-year.

• Click here and access our complete dividend analysis report to understand the dynamics of S.A.S. Dragon Holdings.

• The valuation report we've compiled suggests that S.A.S. Dragon Holdings' current price could be quite moderate.

Agricultural Bank of China

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Agricultural Bank of China Limited, along with its subsidiaries, offers a range of banking products and services and has a market cap of HK$1.84 trillion.

Operations: Agricultural Bank of China Limited generates revenue through its various banking products and services.

Dividend Yield: 6.9%

Agricultural Bank of China offers a reliable dividend yield of 6.9%, supported by stable and consistent payouts over the past decade. The current payout ratio is 32.3%, indicating dividends are well covered by earnings, with future coverage expected to remain strong at 30.6%. Recent events include a CNY 2 billion fixed-income offering completed on July 31, 2024, enhancing the bank's capital structure despite a high level of bad loans at 2.8%.

• Navigate through the intricacies of Agricultural Bank of China with our comprehensive dividend report here.

• Our valuation report here indicates Agricultural Bank of China may be undervalued.

Kunlun Energy

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Kunlun Energy Company Limited, with a market cap of HK$67.19 billion, engages in the exploration, development, production, and sale of crude oil and natural gas.

Operations: Kunlun Energy Company Limited generates revenue primarily from the sales of natural gas (CN￥149.69 billion), LPG (CN￥25.97 billion), LNG processing and terminal operations (CN￥12.64 billion), and exploration and production activities (CN￥391 million).

Dividend Yield: 4.6%

Kunlun Energy’s dividend payments have been volatile over the past decade, though recent increases suggest potential stability. The company maintains a reasonable payout ratio of 55.3% and a low cash payout ratio of 30.8%, indicating dividends are well covered by earnings and cash flows. Recent earnings for H1 2024 showed modest growth with net income rising to CNY 3.31 billion from CNY 3.22 billion year-over-year, supporting its dividend sustainability efforts despite historical unreliability.

• Get an in-depth perspective on Kunlun Energy's performance by reading our dividend report here.

• Our expertly prepared valuation report Kunlun Energy implies its share price may be lower than expected.

Next Steps

• Click here to access our complete index of 79 Top SEHK Dividend Stocks.

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Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

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• Find companies with promising cash flow potential yet trading below their fair value.

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.

Companies discussed in this article include SEHK:1184 SEHK:1288 and SEHK:135.

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