The Hong Kong market has shown resilience amidst global economic shifts, with the Hang Seng Index gaining 5.12% as investors react to the Fed’s recent rate cut and mixed economic data from China. This backdrop provides a fertile ground for dividend stocks, which can offer stable returns in uncertain times. In this context, a good dividend stock is one that not only provides consistent payouts but also demonstrates strong fundamentals and the ability to weather varying market conditions.

Top 10 Dividend Stocks In Hong Kong

Click here to see the full list of 80 stocks from our Top SEHK Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

China Shenhua Energy

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

Overview: China Shenhua Energy Company Limited, with a market cap of HK$864.98 billion, operates in the production and sale of coal and power as well as railway, port, and shipping transportation businesses both in the People’s Republic of China and internationally.

Operations: China Shenhua Energy's revenue segments (in millions of CN￥) are as follows: Coal: 272.39 billion, Power: 92.57 billion, Railway: 43.28 billion, Port: 6.91 billion, Shipping: 4.75 billion, and Coal Chemical: 5.63 billion.

Dividend Yield: 7.3%

China Shenhua Energy's dividend payments are covered by both earnings (payout ratio: 80.8%) and cash flows (cash payout ratio: 74.2%), indicating sustainability. Despite a history of volatile dividends, recent increases over the past decade show some growth potential. The company reported a decline in net income for H1 2024 to CNY 32.77 billion from CNY 36.86 billion a year ago, which may impact future payouts despite solid production and power generation figures for the year to date.

• Dive into the specifics of China Shenhua Energy here with our thorough dividend report.

• Our expertly prepared valuation report China Shenhua Energy implies its share price may be too high.

Tsingtao Brewery

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

Overview: Tsingtao Brewery Company Limited, with a market cap of HK$76.49 billion, produces, distributes, wholesales, and retails beer products in Mainland China, Hong Kong, Macau, and internationally.

Operations: Tsingtao Brewery Company Limited's revenue segments are as follows: East China (CN￥2.53 billion), North China (CN￥8.00 billion), South China (CN￥3.58 billion), Shandong Area (CN￥23.49 billion), South-East China Region (CN￥0.75 billion), and Hong Kong, Macau, and Other Overseas (CN￥0.82 billion).

Dividend Yield: 4.8%

Tsingtao Brewery's recent earnings report shows a slight decline in sales to CNY 19.83 billion but an increase in net income to CNY 3.64 billion for H1 2024. The company's dividend yield of 4.84% is relatively low compared to top dividend payers in Hong Kong, and its dividends are not well covered by free cash flows, with a high cash payout ratio of 145.5%. However, dividends have been stable and growing over the past decade, supported by a reasonable payout ratio of 60.7%.

• Click here and access our complete dividend analysis report to understand the dynamics of Tsingtao Brewery.

• Our valuation report unveils the possibility Tsingtao Brewery's shares may be trading at a discount.

Anhui Expressway

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

Overview: Anhui Expressway Company Limited constructs, operates, manages, and develops toll roads and associated service sections in Anhui province, China, with a market cap of HK$24.54 billion.

Operations: Anhui Expressway Company Limited generates revenue primarily from the construction, operation, management, and development of toll roads and associated service sections in Anhui province, China.

Dividend Yield: 7.1%

Anhui Expressway reported H1 2024 sales of CNY 3.05 billion, up from CNY 2.32 billion a year ago, with net income slightly down to CNY 808.77 million. The company's dividend yield of 7.12% is lower than the top dividend payers in Hong Kong and is not well covered by free cash flows due to a high cash payout ratio of 143.1%. However, dividends have been stable and growing over the past decade, supported by a reasonable earnings payout ratio of 61.1%.

• Take a closer look at Anhui Expressway's potential here in our dividend report.

• The analysis detailed in our Anhui Expressway valuation report hints at an inflated share price compared to its estimated value.

Taking Advantage

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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:1088 SEHK:168 and SEHK:995.

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