Amidst a backdrop of fluctuating global markets, with the Hang Seng Index recently experiencing a notable decline, investors might find refuge in high dividend stocks. These stocks can offer potential stability and regular income, qualities that are particularly appealing in uncertain economic times such as these.
Overview: Shougang Fushan Resources Group Limited operates primarily in the raw coal mining, processing, and sales of both raw and clean coal within the People's Republic of China, with a market capitalization of approximately HK$16.80 billion.
Operations: Shougang Fushan Resources Group Limited generates revenue primarily from its coking coal mining segment, totaling approximately HK$5.89 billion.
Dividend Yield: 8.2%
Shougang Fushan Resources Group recently proposed a final dividend of HK$0.18 per share, reflecting a cautious approach amid declining earnings, with sales dropping to HK$5.89 billion and net income to HK$1.89 billion in 2023 from higher levels the previous year. Despite a historically volatile dividend track record, the company maintains a reasonable payout ratio of 74.4% and cash payout ratio of 34.2%, suggesting that current dividends are well-supported by earnings and cash flow, though future growth remains uncertain with expected earnings decline.
Overview: Xingfa Aluminium Holdings Limited is an investment holding company that manufactures and sells construction and industrial aluminum profiles in the People's Republic of China, with a market capitalization of approximately HK$3.60 billion.
Operations: Xingfa Aluminium Holdings Limited generates CN￥14.12 billion from construction aluminium profiles and CN￥2.64 billion from industrial aluminium profiles.
Dividend Yield: 7.4%
Xingfa Aluminium Holdings Limited recently proposed a final dividend of HK$0.64 per share, indicating confidence following a robust earnings report for 2023 with sales rising to CNY 17.35 billion and net income increasing significantly to CNY 804.17 million from CNY 457.77 million in the previous year. Despite this positive trend, the company's dividend history has been marked by inconsistency, with payments showing volatility over the past decade. Currently, dividends are reasonably covered by both earnings (30.4% payout ratio) and cash flows (51.1% cash payout ratio), but the yield of 7.44% remains slightly below the top quartile in Hong Kong's market at 7.56%.
Overview: Lenovo Group Limited is an investment holding company that develops, manufactures, and markets technology products and services, with a market capitalization of approximately HK$137.20 billion.
Operations: Lenovo Group's revenue is primarily derived from three segments: the Intelligent Devices Group (IDG) generating $44.60 billion, the Infrastructure Solutions Group (ISG) with $8.92 billion, and the Solutions and Services Group (SSG) contributing $7.47 billion.
Dividend Yield: 3.4%
Lenovo Group Limited recently reported a substantial increase in quarterly earnings, with sales rising to US$13.83 billion and net income doubling to US$248 million. Despite a challenging year with overall annual sales down to US$56.86 billion and net income falling to US$1.01 billion, the company declared a final dividend of 3.8 US cents per share, affirming its commitment to shareholder returns amidst governance changes and legal challenges in Germany over patent issues. These dividends are supported by a payout ratio of 57.8% from earnings and 83.2% from cash flows, although the yield is modest at 3.44% compared to Hong Kong's top dividend payers.
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.
