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Best-In-Class Dividend Stocks

Lacy Summers

China Everbright is one of companies that can help grow your investment income by paying large dividends. These stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. I’ve made a list of other value-adding dividend-paying stocks for you to consider for your investment portfolio.

China Everbright Limited (SEHK:165)

China Everbright Limited, an investment holding company, engages in investment activities and provides financial services in Hong Kong and Mainland China. Established in 1997, and headed by CEO Shuang Chen, the company currently employs 320 people and with the company’s market cap sitting at HKD HK$28.85B, it falls under the large-cap category.

165 has an alluring dividend yield of 4.97% and is distributing 36.35% of earnings as dividends . Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from HK$0.10 to HK$0.85. Comparing China Everbright’s PE ratio against the HK Capital Markets industry draws favorable results, with the company’s PE of 7.3 being below that of its industry (12.9). Dig deeper into China Everbright here.

SEHK:165 Historical Dividend Yield May 22nd 18

Zhejiang Expressway Co., Ltd. (SEHK:576)

Zhejiang Expressway Co., Ltd., an investment holding company, invests in, develops, operates, maintains, and manages high grade roads in the People’s Republic of China. Started in 1997, and headed by CEO Jianhu Luo, the company now has 6,871 employees and with the market cap of HKD HK$33.53B, it falls under the large-cap category.

576 has a large dividend yield of 5.74% and pays 48.38% of its earnings as dividends , with the expected payout in three years being 50.33%. In the case of 576, they have increased their dividend per share from CN¥0.35 to CN¥0.44 so in the past 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. Dig deeper into Zhejiang Expressway here.

SEHK:576 Historical Dividend Yield May 22nd 18

Yue Yuen Industrial (Holdings) Limited (SEHK:551)

Yue Yuen Industrial (Holdings) Limited, an investment holding company, engages in the manufacturing, marketing, and retailing of athletic footwear, athletic style leisure footwear, and casual and outdoor footwear in the People’s Republic of China, the United States, Europe, and internationally. Started in 1969, and now led by CEO Pei-Chun Tsai, the company employs 361,000 people and with the company’s market capitalisation at HKD HK$36.54B, we can put it in the large-cap category.

551 has a sumptuous dividend yield of 6.67% and the company has a payout ratio of 64.44% , with analysts expecting this ratio in three years to be 70.07%. 551’s last dividend payment was US$1.50, up from it’s payment 10 years ago of US$0.84. The company has been a reliable payer too, not missing a payment during this time. When we compare Yue Yuen Industrial (Holdings)’s PE ratio with its industry, the company appears favorable. The HK Luxury industry’s average ratio of 12.8 is above that of Yue Yuen Industrial (Holdings)’s (9.6). More on Yue Yuen Industrial (Holdings) here.

SEHK:551 Historical Dividend Yield May 22nd 18

For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.