Bank of China is one of companies on my list of top dividend stocks. Dividend stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. As a long term investor with a short term temperament, I highly recommend these top dividend stocks.
Bank of China Limited (SEHK:3988)
Bank of China Limited, together with its subsidiaries, provides a range of banking and related financial services in the People’s Republic of China and internationally. Founded in 1912, and run by CEO , the company size now stands at 304,492 people and with the company’s market capitalisation at HKD HK$1.43T, we can put it in the large-cap group.
3988 has a enticing dividend yield of 4.59% and is currently distributing 29.58% of profits to shareholders , with analysts expecting a 30.01% payout in three years. 3988’s dividends have increased in the last 10 years, with DPS increasing from CN¥0.044 to CN¥0.19. It should comfort existing and potential future shareholders to know that 3988 hasn’t missed a payment during this time. Interested in Bank of China? Find out more here.
China Construction Bank Corporation (SEHK:939)
China Construction Bank Corporation provides various banking and related financial services in the People’s Republic of China. Established in 1954, and headed by CEO Zuji Wang, the company employs 372,013 people and with the stock’s market cap sitting at HKD HK$2.02T, it comes under the large-cap category.
939 has a good-sized dividend yield of 3.92% and the company has a payout ratio of 29.49% , with the expected payout in three years being 29.93%. Although there has been some volatility in the company’s dividend yield, the DPS over a 10 year period has increased from CN¥0.15 to CN¥0.31. Dig deeper into China Construction Bank here.
Industrial and Commercial Bank of China Limited (SEHK:1398)
Industrial and Commercial Bank of China Limited provides various banking products and services worldwide. Established in 1984, and headed by CEO Shu Gu, the company size now stands at 454,073 people and with the company’s market capitalisation at HKD HK$2.80T, we can put it in the large-cap stocks category.
1398 has a decent dividend yield of 3.97% and distributes 30.09% of its earnings to shareholders as dividends , with analysts expecting the payout in three years to be 30.27%. Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from CN¥0 to CN¥0.26 over the past 10 years. Interested in Industrial and Commercial Bank of China? Find out more here.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our 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.