Chongqing Rural Commercial Bank and Two Other Big Dividend Stocks to Consider

Amid mixed global economic signals, the Hong Kong market has shown resilience, with the Hang Seng Index advancing in a holiday-shortened week. This stability, coupled with current economic conditions, makes this an opportune time to consider dividend stocks that can offer steady income potential and lower volatility.

Top 10 Dividend Stocks in Hong Kong

Name	Dividend yield	Dividend Rating
China Construction Bank (SEHK:939)	8.00%	★★★★★★
CITIC Telecom International Holdings (SEHK:1883)	9.37%	★★★★★★
SAS Dragon Holdings (SEHK:1184)	8.97%	★★★★★☆
China Electronics Huada Technology (SEHK:85)	8.27%	★★★★★☆
Chongqing Rural Commercial Bank (SEHK:3618)	7.89%	★★★★★☆
China Grand Oceans Overseas Group (SEHK:81)	8.43%	★★★★★☆
International Retailing of Household Goods (SEHK:1373)	9.33%	★★★★★☆
Bank of China (SEHK:3988)	7.26%	★★★★★☆
China Mobile (SEHK:941)	6.21%	★★★★★☆
Sinopharm Group (SEHK:1099)	4.35%	★★★★★☆

Click here to see the full list of 89 stocks in our Best Dividend Stocks Analysis tool.

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

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

Preview: Chongqing Rural Commercial Bank Co., Ltd. mainly operates in the banking sector in the People’s Republic of China, with a market capitalization of approximately HK$58.63 billion.

Operations: Chongqing Rural Commercial Bank Co., Ltd. generates its revenues primarily from banking services in the People’s Republic of China.

Dividend yield: 7.9%

Chongqing Rural Commercial Bank declared a dividend of RMB0.2885 per share for 2023, totaling RMB3.28 billion, reflecting a stable payout with a recent increase approved at its annual general meeting. Despite a slight decline in net income and interest income in the first quarter of 2024, the bank maintains a low payout ratio (32.1%), suggesting the sustainability of its dividend payouts. The bank’s dividends are well covered by earnings, with forecasts indicating continued coverage over the next three years (payout ratio of 28.9%).

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

Preview: Leoch International Technology Limited operates as an investment holding company focused on energy 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$2.32 billion.

Operations: Leoch International Technology Limited generates CNY 13.47 billion mainly from the manufacturing, development and sales of lead-acid batteries and related items.

Dividend yield: 8.2%

Leoch International Technology has had a mixed performance in its dividend offerings, with a history of volatility over the past 9 years and recent cuts, such as the final dividend of HK$7 cents per share for 2023 approved at its annual general meeting. Despite this, its dividends are well covered by earnings and cash flow, with payout ratios of 25.4% and 54.5% respectively. The company’s shares are trading at a significant discount to estimated fair value, suggesting potential undervaluation.

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

Preview: Tianjin Development Holdings Limited operates in the People’s Republic of China, providing water, heating, thermal energy and electricity in the Tianjin Economic and Technological Development Zone, with a market capitalization of approximately HK$1.96 billion.

Operations: Tianjin Development Holdings Limited generates revenue mainly from its utilities segment, which brought in HK$1.60 billion, followed by pharmaceuticals with HK$1.44 billion, with additional revenue from hotel operations and electrical and mechanical services totaling HK$130.38 million and HK$166.77 million, respectively.

Dividend yield: 6.7%

Tianjin Development Holdings recently raised its dividend to HK$0.088 per share, reflecting its commitment to shareholder returns despite the challenges of covering these payments with earnings and cash flow. The company’s dividend yield stands at 6.69%, which is below the Hong Kong market’s highest level, and financial results were affected by significant one-off items. However, dividends have shown stability over the past decade, supported by a low payout ratio of 20.7%.

To sum it all up

• Get a glimpse into the universe of 89 best dividend stocks by clicking here.
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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.

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