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Amidst a backdrop of fluctuating global markets, the Hong Kong stock market has shown resilience, reflecting broader economic dynamics and investor sentiment. As investors navigate through these uncertain times, dividend stocks like JBM Healthcare continue to attract attention for their potential to offer steady returns in a volatile environment.

Top 10 Dividend Stocks In Hong Kong

Click here to see the full list of 85 stocks from our Top SEHK Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

JBM (Healthcare) (SEHK:2161)

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

Overview: JBM (Healthcare) Limited operates as an investment holding company that manufactures, markets, distributes, and sells branded healthcare and wellness products across Hong Kong, Macau, Mainland China, and internationally with a market capitalization of approximately HK$0.81 billion.

Operations: JBM (Healthcare) Limited generates HK$190.11 million from branded medicines, HK$72.19 million from health and wellness products, and HK$386.12 million from proprietary Chinese medicines.

Dividend Yield: 8.4%

JBM (Healthcare) Limited, trading at 47.5% below its estimated fair value, recently proposed a final dividend of HK$0.0405 per share for FY ending March 31, 2024. Despite a short dividend history of less than 10 years and an unstable track record, the company's dividends appear sustainable with a payout ratio of 50.8% and are well-covered by earnings and cash flows (cash payout ratio at 37.2%). Additionally, JBM reported significant growth with annual sales rising to HK$648.42 million and net income increasing to HK$130.46 million.

• Click here to discover the nuances of JBM (Healthcare) with our detailed analytical dividend report.
• The analysis detailed in our JBM (Healthcare) valuation report hints at an deflated share price compared to its estimated value.

First Tractor (SEHK:38)

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

Overview: First Tractor Company Limited specializes in the research, development, and manufacturing of agricultural and power machinery, along with related spare parts globally, boasting a market capitalization of approximately HK$14.83 billion.

Operations: First Tractor Company Limited generates its revenue primarily from the production and sale of agricultural machinery, power machinery, and related spare parts.

Dividend Yield: 4.9%

First Tractor's recent dividend increase to HK$0.352 per share, despite a volatile history over the past decade, suggests a cautious optimism for dividend seekers. The company's dividends are well-supported by earnings and cash flows with payout ratios at 32.3% and 34.5%, respectively, indicating sustainability amid financial fluctuations. However, its yield of 4.87% remains below the top-tier in Hong Kong’s market. Recent board resignations could signal significant leadership changes ahead, impacting future stability and policy directions.

• Dive into the specifics of First Tractor here with our thorough dividend report.
• Our expertly prepared valuation report First Tractor implies its share price may be too high.

Leoch International Technology (SEHK:842)

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

Overview: Leoch International Technology Limited operates as an investment holding company focused on power solutions and recycled lead, serving regions including Mainland China, Europe, the Middle East, Africa, the Americas, and Asia-Pacific with a market cap of approximately HK$2.22 billion.

Operations: Leoch International Technology Limited generates revenue primarily through the manufacture and development of lead-acid batteries and related items, totaling CN¥13.47 billion.

Dividend Yield: 8.6%

Leoch International Technology Limited offers a dividend yield of 8.64%, ranking in the top 25% in Hong Kong's market. Despite only having a nine-year dividend history with some volatility, its dividends are sustainably covered by earnings and cash flows, with payout ratios of 25.4% and 54.6% respectively. However, recent events include a dividend cut to HK$0.07 per share and executive changes, potentially affecting future dividend reliability and governance stability.

• Delve into the full analysis dividend report here for a deeper understanding of Leoch International Technology.
• Upon reviewing our latest valuation report, Leoch International Technology's share price might be too pessimistic.

Seize The Opportunity

• Click here to access our complete index of 85 Top SEHK Dividend Stocks.
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Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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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