Amidst global economic uncertainties and fluctuating market conditions, the Hong Kong stock market has shown resilience, with its defensive sectors like utilities and consumer staples performing relatively well. In this environment, dividend stocks can offer a stable income stream and potential for capital appreciation. A good dividend stock typically combines a strong track record of consistent payouts with solid financial health and growth prospects. Here are three top SEHK dividend stocks currently yielding up to 7.9%.

Top 10 Dividend Stocks In Hong Kong

Click here to see the full list of 75 stocks from our Top SEHK Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Fu Shou Yuan International Group (SEHK:1448)

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

Overview: Fu Shou Yuan International Group Limited, with a market cap of HK$8.65 billion, provides burial and funeral services in the People’s Republic of China through its subsidiaries.

Operations: Fu Shou Yuan International Group Limited generates revenue primarily from burial services (CN¥1.78 billion) and funeral services (CN¥357.97 million) in the People’s Republic of China.

Dividend Yield: 4.2%

Fu Shou Yuan International Group offers a stable dividend history with payments increasing over the past 10 years. The current payout ratio of 43.6% and cash payout ratio of 54.4% indicate dividends are well-covered by earnings and cash flows, respectively. However, recent financials show a decline in sales (CNY 1.1 billion) and net income (CNY 298.8 million) for H1 2024 compared to last year, potentially impacting future dividend sustainability despite trading below estimated fair value by 37.7%.

• Dive into the specifics of Fu Shou Yuan International Group here with our thorough dividend report.
• Our valuation report here indicates Fu Shou Yuan International Group may be undervalued.

Emperor Watch & Jewellery (SEHK:887)

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

Overview: Emperor Watch & Jewellery Limited, with a market cap of HK$1.12 billion, is an investment holding company that engages in the sale of watches and jewelry products.

Operations: Emperor Watch & Jewellery Limited generates revenue of HK$5.09 billion from its watch and jewelry sales.

Dividend Yield: 7.6%

Emperor Watch & Jewellery's dividend payments have been volatile over the past decade, with a recent decrease to 0.65 HK cents per share for H1 2024. Despite this, dividends remain well-covered by earnings (payout ratio: 27.5%) and cash flows (cash payout ratio: 27.2%). The company reported steady sales growth to HK$2.60 billion but stagnant net income at HK$184.71 million for H1 2024, raising concerns about future dividend stability despite trading below fair value by nearly 20%.

• Get an in-depth perspective on Emperor Watch & Jewellery's performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Emperor Watch & Jewellery shares in the market.

Xingfa Aluminium Holdings (SEHK:98)

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

Overview: Xingfa Aluminium Holdings Limited is an investment holding company that manufactures and sells construction and industrial aluminium profiles in the People’s Republic of China, with a market cap of HK$3.39 billion.

Operations: Xingfa Aluminium Holdings Limited generates revenue from two primary segments: Industrial Aluminium Profiles (CN¥2.79 billion) and Construction Aluminium Profiles (CN¥14.42 billion).

Dividend Yield: 7.9%

Xingfa Aluminium Holdings has shown strong earnings growth, with net income rising to CNY 378.36 million for H1 2024 from CNY 260.59 million a year ago. Dividends have been volatile over the past decade but are well-covered by both earnings (payout ratio: 30.4%) and cash flows (cash payout ratio: 26.3%). Despite trading below fair value by about 22%, its dividend yield of 7.92% is relatively low compared to top-tier dividend payers in Hong Kong.

• Delve into the full analysis dividend report here for a deeper understanding of Xingfa Aluminium Holdings.
• The valuation report we've compiled suggests that Xingfa Aluminium Holdings' current price could be quite moderate.

Key Takeaways

• Gain an insight into the universe of 75 Top SEHK Dividend Stocks by clicking here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Want To Explore Some Alternatives?

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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.

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