International Housewares Retail and two other SEHK dividend stocks to consider

In recent trading sessions, the Hang Seng Index has struggled, falling 4.79% amid broader concerns reflected in global markets over economic growth and trade tensions. Despite these headwinds, dividend stocks in Hong Kong continue to attract investors looking for stable potential income streams in a volatile market environment.

Top 10 Dividend Stocks in Hong Kong

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

We’ll take a look at some of the top picks from our selection tool.

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

Preview: International Housewares Retail Company Limited operates as an investment holding company focused on the retail and trading of household products, with a market capitalization of approximately HK$0.89 billion.

Operations: International Housewares Retail Company Limited generates revenue primarily from its retail operations in Hong Kong and Macau, which contributed HK$2.44 billion, and Singapore, which added HK$0.31 billion.

Dividend yield: 9%

International Housewares Retail recently projected a significant decline in earnings of 32% to 38% for the financial year ending April 2024, mainly due to lower demand following the pandemic and increased operating costs. Despite these challenges, the company has managed to increase its dividend payouts over the past decade and maintains a high dividend yield of 9.03%, ranking in the top quartile of the Hong Kong market. However, its dividends have shown some volatility over this period, with notable fluctuations exceeding 20% ​​per year. The company’s dividends are currently supported by both earnings and cash flow, with payout ratios of 80.2% and cash payout ratios at a more comfortable 22.3%, respectively.

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

The story continues

Preview: Precision Tsugami (China) Corporation Limited is an investment holding company engaged in the manufacture and sale of CNC machine tools, operating mainly in mainland China and worldwide, with a market capitalization of approximately HK$3.55 billion.

Operations: Precision Tsugami (China) generates revenue mainly from the manufacture and sale of high-precision CNC machine tools, totaling CNY 3.12 billion.

Dividend yield: 8.5%

Precision Tsugami (China) Corporation Limited has increased its dividend, with a recent proposal of HK$0.4 per share, despite a short dividend history of six years. The company’s dividends are well supported by earnings and cash flows, with payout ratios of 58.5% and cash payout ratios of 67.7%, respectively. However, it faces challenges as earnings declined year-on-year from CNY579.19 million to CNY479.97 million, impacting its financial stability and prospects for future dividend payment growth.

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

Preview: Xinhua Winshare Publishing and Media Co., Ltd. operates in publishing and distribution businesses across the People’s Republic of China, with a market capitalization of approximately HK$15.81 billion.

Operations: Xinhua Winshare Publishing and Media Co., Ltd. generates its revenues primarily from publishing and distribution activities in the People’s Republic of China.

Dividend yield: 4.5%

Xinhua Winshare Publishing and Media has approved a final dividend of RMB0.40 per share for 2023, reflecting a commitment to shareholder returns despite its history of dividend volatility. The company’s dividends are well covered by earnings and cash flow, with payout ratios of 30.9% and 23.1% respectively, suggesting sustainability from a financial perspective. However, the relatively low yield compared to Hong Kong’s major dividend payers indicates limited attractiveness to yield-oriented investors. Recent management changes and the switch of auditor to KPMG may influence future governance and financial transparency.

Where to now?

• Dive into the 89 best SEHK dividend stocks we’ve identified here.

• Got an interest in these stocks? Improve the way you manage them using the Simply Wall St portfolio, where intuitive tools await to help you optimize your investment results.

• Unleash the power of informed investing with Simply Wall St, your free guide to navigating the world’s stock markets.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to constitute financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. Our goal is to provide you with focused, long-term analysis based on fundamental data. Please note that our analysis may not factor in the latest price-sensitive company announcements or qualitative information. Simply Wall St has no position in any of the stocks mentioned.

Companies mentioned in this article include SEHK:1373 SEHK:1651 and SEHK:811.

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