The Hong Kong market has shown mixed performance recently, reflecting broader global economic uncertainties and investor sentiment. Amid this backdrop, dividend stocks remain an attractive option for investors seeking steady income and potential long-term growth. In this article, we will explore three standout dividend stocks listed on the Stock Exchange of Hong Kong (SEHK), including Pacific Basin Shipping and two other top picks.

Top 10 Dividend Stocks In Hong Kong

Click here to see the full list of 89 stocks from our Top SEHK Dividend Stocks screener.

We'll examine a selection from our screener results.

Pacific Basin Shipping

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

Overview: Pacific Basin Shipping Limited, with a market cap of HK$12.37 billion, is an investment holding company that provides dry bulk shipping services globally.

Operations: Pacific Basin Shipping Limited generates revenue primarily from its dry bulk shipping services, amounting to $2.30 billion.

Dividend Yield: 5.1%

Pacific Basin Shipping's dividend payments have been unstable over the past decade, with notable volatility and occasional drops. Despite this, dividends are currently covered by earnings (47.6% payout ratio) and cash flows (79.8% cash payout ratio). The company has initiated a share repurchase program worth HK$312 million to enhance net asset value per share and earnings per share, potentially benefiting shareholders. However, its 5.11% dividend yield remains lower than Hong Kong's top 25%.

• Dive into the specifics of Pacific Basin Shipping here with our thorough dividend report.

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

SINOPEC Engineering (Group)

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

Overview: SINOPEC Engineering (Group) Co., Ltd. (SEHK:2386) offers engineering, procurement, and construction (EPC) contracting services in China and internationally, with a market cap of HK$23.11 billion.

Operations: SINOPEC Engineering (Group) Co., Ltd. generates revenue from various segments including Construction (CN￥25.28 billion), EPC Contracting (CN￥31.99 billion), Equipment Manufacturing (CN￥731.15 million), and Engineering, Consulting, and Licensing (CN￥3.82 billion).

Dividend Yield: 7.1%

SINOPEC Engineering (Group) has experienced volatility in its dividend payments over the past decade. Despite a lower-than-average dividend yield of 7.12%, dividends are currently sustainable with a payout ratio of 65% and cash payout ratio of 71.2%. The company has initiated a share repurchase program, authorized to buy back up to 441.85 million shares, which could enhance net asset value per share and earnings per share, potentially benefiting shareholders in the long term.

• Take a closer look at SINOPEC Engineering (Group)'s potential here in our dividend report.

• Insights from our recent valuation report point to the potential overvaluation of SINOPEC Engineering (Group) shares in the market.

Bosideng International Holdings

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

Overview: Bosideng International Holdings Limited operates in the apparel business in the People’s Republic of China and has a market cap of HK$42.82 billion.

Operations: Bosideng International Holdings Limited's revenue segments include Down Apparels (CN￥19.54 billion), Ladieswear Apparels (CN￥819.80 million), Diversified Apparels (CN￥235.33 million), and Original Equipment Manufacturing (OEM) Management (CN￥2.70 billion).

Dividend Yield: 6.4%

Bosideng International Holdings proposed a final dividend of HK$0.20 per share for the year ended 31 March 2024, with shareholder approval pending on 20 August 2024. The company's earnings grew significantly, with net income rising to CNY 3.07 billion from CNY 2.14 billion the previous year. Despite a history of volatile dividends, current payouts are sustainable with an earnings payout ratio of 80.4% and cash payout ratio of 37.1%.

• Unlock comprehensive insights into our analysis of Bosideng International Holdings stock in this dividend report.

• Our valuation report here indicates Bosideng International Holdings may be undervalued.

Taking Advantage

• Navigate through the entire inventory of 89 Top SEHK Dividend Stocks here.

• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.

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Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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:2343 SEHK:2386 and SEHK:3998.

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