Amid a backdrop of fluctuating global markets, with the Hang Seng Index recently experiencing a notable decline, investors are increasingly focused on stable income streams. In this context, high-yield dividend stocks in Hong Kong, such as Dawnrays Pharmaceutical Holdings, offer potential for both income and diversification in uncertain times.
Overview: Dawnrays Pharmaceutical (Holdings) Limited is an investment holding company that focuses on the development, manufacture, and sale of non-patented pharmaceutical medicines in Mainland China and internationally, with a market capitalization of approximately HK$1.79 billion.
Operations: Dawnrays Pharmaceutical (Holdings) Limited generates revenue primarily through the sale of finished drugs, which brought in CN￥1.02 billion, and intermediates and bulk medicines, contributing CN￥210.05 million.
Dividend Yield: 6.7%
Dawnrays Pharmaceutical recently approved a final dividend of HK$0.065 per share for 2023, reflecting a decrease from the previous year's HK$0.073. Despite this reduction, the company maintains a sustainable dividend with a payout ratio of 33.4% and is adequately covered by earnings and cash flows (cash payout ratio of 87.6%). However, its historical dividend track record has been unstable, showing volatility over the past decade which might concern conservative dividend investors seeking reliability in payouts.
Overview: Eagle Nice (International) Holdings Limited is an investment holding company that manufactures and trades sportswear and garments across Mainland China, the United States, Europe, Japan, and other international markets, with a market capitalization of approximately HK$2.60 billion.
Operations: Eagle Nice (International) Holdings Limited generates revenue primarily from sportswear and garment sales, with HK$2.24 billion from Mainland China, HK$757.55 million from the USA, HK$466.21 million from Europe, and HK$87.67 million from Japan.
Dividend Yield: 7.8%
Eagle Nice (International) Holdings has demonstrated a mixed dividend history with a 10-year period of volatility, including significant annual drops. Despite this, its current dividend yield of 7.79% ranks in the top quartile for Hong Kong, supported by a cash payout ratio of 44.5% and an earnings payout ratio of 71.7%. Recent board changes could influence future financial strategies, potentially impacting dividend reliability and growth prospects.
Overview: Zhongsheng Group Holdings Limited operates as an investment holding company, focusing on the sale and service of motor vehicles in the People’s Republic of China, with a market capitalization of approximately HK$37.31 billion.
Operations: Zhongsheng Group Holdings Limited generates revenue primarily through the sale of motor vehicles and related services, totaling approximately CN￥179.29 billion.
Dividend Yield: 5.1%
Zhongsheng Group Holdings, despite a recent dividend decrease to HK$0.797 per share, maintains a sustainable payout with an earnings coverage of 35.2% and cash flow coverage of 49.7%. The firm's sales slightly declined from CNY 179.86 billion to CNY 179.29 billion year-over-year, with net income also falling from CNY 6.69 billion to CNY 5.02 billion. Recent executive appointments suggest potential strategic shifts, possibly impacting future financial management and dividend policies.
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.