As global markets exhibit mixed signals and investors navigate a landscape of varied economic data, the Hong Kong market has also seen its share of fluctuations. Amid these dynamics, dividend stocks remain a focal point for those seeking steady income streams. In this context, identifying robust dividend stocks can be particularly appealing. A good dividend stock typically offers consistent payouts and demonstrates resilience in volatile markets, making it an attractive option for investors looking to balance risk and reward.
Overview: China Nonferrous Mining Corporation Limited (SEHK:1258) is an investment holding company involved in the exploration, mining, ore processing, leaching, smelting, and sale of copper products with a market cap of HK$21.70 billion.
Operations: China Nonferrous Mining Corporation Limited generates revenue from leaching ($1.10 billion) and smelting ($2.56 billion) of copper products.
Dividend Yield: 4.2%
China Nonferrous Mining Corporation Limited recently approved a final ordinary dividend of US$0.029702 per share for FY2023, with payment on 15 July 2024. Despite an unstable and volatile dividend track record over the past decade, the company’s dividends are well-covered by both earnings (payout ratio: 40%) and free cash flow (cash payout ratio: 26.8%). Recent earnings guidance indicates a profit increase to US$217 million for H1 2024, driven by higher international copper prices.
Overview: Tsingtao Brewery Company Limited, with a market cap of HK$85.42 billion, produces, distributes, wholesales, and retails beer products in Mainland China, Hong Kong, Macau, and internationally.
Operations: Tsingtao Brewery Company Limited generates revenue primarily through the production and sale of beer products across various regions, including Mainland China, Hong Kong, Macau, and international markets.
Dividend Yield: 4.3%
Tsingtao Brewery recently approved a final dividend of RMB 2 per share for FY2023, payable on 9 August 2024. While the dividend yield of 4.33% is lower compared to top-tier payers in Hong Kong, it has been stable over the past decade. However, the high cash payout ratio (145.5%) indicates dividends are not well covered by free cash flows. Despite this, earnings have grown annually by 21.4% over five years and dividends have consistently increased over ten years.
Overview: China Coal Energy Company Limited mines, produces, processes, trades in, and sells coal both within the People’s Republic of China and internationally, with a market cap of approximately HK$150.85 billion.
Operations: China Coal Energy Company Limited generates revenue primarily from mining, producing, processing, trading, and selling coal within China and internationally.
Dividend Yield: 6%
China Coal Energy announced a final dividend of RMB 0.442 per share and a special dividend of RMB 0.113 per share, both payable on 26 August 2024. Despite recent executive resignations, the company's dividends are well-covered by earnings and cash flows with payout ratios around 33%. However, the stock's dividend yield of 6.03% is lower than Hong Kong's top-tier payers, and its historical dividend payments have been volatile over the past decade.
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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:1258 SEHK:168 and SEHK:1898.
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