At EastMoneyStocks, we recognise that not every investor is interested in buying penny stocks. As such, there is a role for dividend stocks to play in the portfolio of most investors, especially in times of economic uncertainty.
We look at some of the familiar blue chip names today. What is notable is that these companies have been able to raise their dividends, a promising sign which indicates stronger cash flows and potentially higher future payouts.
1. Hong Kong Exchanges and Clearing Limited
If you are a regular follower of our website, Hong Kong Exchanges and Clearing Limited (388.HK), or HKEX, needs little introduction. As the sole stock exchange operator in Hong Kong, the company provides facilities for trading and clearing of securities, and also derivatives in equities, commodities, fixed income and currencies.
During the last financial year, HKEX reported a 20% increase in revenue to HKD 15.9 billion, while profit attributable to shareholders rose 26% year-on-year to HKD 9.3 billion. The annual dividend increased by 24% in line with the increase in profit. The stock currently has a dividend yield of 2.8%.
2. CK Infrastructure Holdings Ltd
CK Infrastructure Holdings Ltd (1038.HK) is a global infrastructure company with investments and developments around the world. The company’s assets include those in energy, transportation, water and waste management. The group’s investments and operations span Asia Pacific and Europe.
During the last financial year, the company increased its dividend per share by 2.1%. The company has been increasing its dividend per share for over 20 years, an achievement most other companies could only dream of. The stock currently has a dividend yield of 4.3%.
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3. Sun Hung Kai Properties Limited
Sun Hung Kai Properties Limited (SEHK: 16) operates and manages various property types including hotels, shopping malls, residential, and car parks. The company’s assets are mostly located in Hong Kong and mainland China.
The company’s net profit of HKD 32.4 billion rose 6.5% last year. Dividend per share increased by the same rate. The stock currently has a dividend yield of 4.2%.