Wasion Holdings Leads Three Key Dividend Stocks In Hong Kong

Amidst a challenging week for global markets, with significant fluctuations across major indices, Hong Kong's market has not been immune to these pressures. As investors navigate through these turbulent times, understanding the resilience and potential of dividend stocks like Wasion Holdings becomes increasingly pertinent.

Top 10 Dividend Stocks In Hong Kong

Name	Dividend Yield	Dividend Rating
China Construction Bank (SEHK:939)	7.72%	★★★★★★
Chongqing Rural Commercial Bank (SEHK:3618)	8.88%	★★★★★★
CITIC Telecom International Holdings (SEHK:1883)	9.81%	★★★★★★
Consun Pharmaceutical Group (SEHK:1681)	9.14%	★★★★★☆
S.A.S. Dragon Holdings (SEHK:1184)	9.02%	★★★★★☆
Playmates Toys (SEHK:869)	8.22%	★★★★★☆
Bank of China (SEHK:3988)	6.89%	★★★★★☆
China Mobile (SEHK:941)	6.56%	★★★★★☆
Sinopharm Group (SEHK:1099)	4.22%	★★★★★☆
International Housewares Retail (SEHK:1373)	8.62%	★★★★★☆

Click here to see the full list of 92 stocks from our Top Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Wasion Holdings

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

Overview: Wasion Holdings Limited is an investment holding company specializing in the development, production, and sale of energy metering and energy efficiency management solutions across China, Africa, the US, Europe, and other parts of Asia, with a market capitalization of approximately HK$7.18 billion.

Operations: Wasion Holdings Limited generates revenue primarily through three segments: Advanced Distribution Operations (CN¥2.48 billion), Power Advanced Metering Infrastructure (CN¥2.67 billion), and Communication and Fluid Advanced Metering Infrastructure (CN¥2.21 billion).

Dividend Yield: 3.9%

Wasion Holdings Limited has shown a mixed performance in its dividend metrics. While the company's dividends are well-supported by both earnings and cash flows, with payout ratios of 48.9% and 27.6% respectively, its dividend history over the past decade has been marked by volatility and unreliability. Recent financial growth is notable, with a significant increase in earnings last year and strong forecasts for future growth. However, its current dividend yield of 3.87% remains relatively low compared to the top quartile of Hong Kong market payers at 7.53%. Additionally, recent corporate activities include securing substantial contracts in metering equipment which may bolster future financial stability but have yet to reflect consistently in dividend payouts.

• Navigate through the intricacies of Wasion Holdings with our comprehensive dividend report here.

• According our valuation report, there's an indication that Wasion Holdings' share price might be on the cheaper side.

SEHK:3393 Dividend History as at May 2024

China Unicom (Hong Kong)

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

Overview: China Unicom (Hong Kong) Limited operates as an investment holding company, offering telecommunications and related value-added services in the People’s Republic of China, with a market capitalization of approximately HK$194.60 billion.

Operations: China Unicom (Hong Kong) Limited generates CN¥374.87 billion from its Wireless Communications Services segment.

Dividend Yield: 5.7%

China Unicom (Hong Kong) Limited maintains a stable dividend coverage, with earnings and cash flows supporting its payouts at a 55% payout ratio and 44.7% cash payout ratio respectively. Despite an unstable dividend history over the past decade, recent shareholder meetings have approved a final dividend increase. However, its current yield of 5.72% is lower than the top quartile in Hong Kong's market at 7.53%. The company's earnings have grown by 11.1% over the past year with continued growth expected.

• Unlock comprehensive insights into our analysis of China Unicom (Hong Kong) stock in this dividend report.

• Upon reviewing our latest valuation report, China Unicom (Hong Kong)'s share price might be too pessimistic.

SEHK:762 Dividend History as at May 2024

Leoch International Technology

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

Overview: Leoch International Technology Limited operates as an investment holding company focused on power solutions and recycled lead, serving regions including Mainland China, Europe, the Middle East, Africa, the Americas, and Asia-Pacific, with a market capitalization of approximately HK$1.99 billion.

Operations: Leoch International Technology Limited generates revenue primarily through the manufacture and development of lead-acid batteries and related items, totaling CN¥13.47 billion.

Dividend Yield: 9.6%

Leoch International Technology Limited, while trading 76.7% below estimated fair value, shows a high dividend yield of 9.54%, ranking in the top 25% in Hong Kong's market. Despite this, its dividend history is marked by instability and recent cuts, as evidenced by a reduced final dividend announced on May 16, 2024. The dividends are well-covered with a payout ratio of 25.4% and cash payout ratio of 54.3%, but the company carries a high level of debt which may concern investors looking for sustainable income sources from dividends.

• Take a closer look at Leoch International Technology's potential here in our dividend report.

• In light of our recent valuation report, it seems possible that Leoch International Technology is trading behind its estimated value.

SEHK:842 Dividend History as at May 2024

Next Steps

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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:3393 SEHK:762 and SEHK:842.

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