3 reliable dividend stocks with a yield of up to 9.7%

In a week marked by record gains in US stock indexes and solid stimulus measures from China, global markets showed renewed optimism. In this buoyant environment, dividend stocks stand out as a reliable option for investors looking for steady income. A good dividend company not only offers attractive rates of return, but also demonstrates resilience and stability in changing market conditions. Here are three such reliable dividend stocks with yields of up to 9.7%.

10 companies with the highest dividends

Click here to see the full list of 2,036 stocks from our Top Dividend Stocks Checker.

We’re going to check out some of the top picks from our checker.

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

Review: Beijing Urban Construction Design & Development Group Co., Limited, together with its subsidiaries, offers infrastructure construction services both in China and internationally, with a market capitalization of HKD 2.31 billion.

Operations: Beijing Urban Construction Design & Development Group Co., Limited generates revenue primarily from two segments: construction contracting (CN¥5.42 billion) and design, research and consulting (CN¥4.64 billion).

Dividend rate: 9.8%

Beijing Urban Construction Design & Development Group (1599) offers an attractive dividend profile with a low payout ratio of 27.5%, which ensures that the dividend is well covered by earnings and cash flow (54.3%). Even though dividends only last nine years, the payouts are stable and growing. However, recent financial results indicate a decline in sales (CNY 4.18 billion) and net profit (CNY 366.03 million), which may impact the stability of the dividend in the future.

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

Review: Tong Ren Tang Technologies Co. Ltd. produces and sells Chinese medicine products in mainland China and around the world, with a market capitalization of approximately HKD 7.40 billion.

The story continues

Operations: Tong Ren Tang Technologies Co. Revenue Segments Ltd. include the Company worth CN¥4.29 billion and Tong Ren Tang Chinese Medicine worth CN¥1.26 billion.

Dividend rate: 3.1%

Tong Ren Tang Technologies’ dividend payout has been stable and growing over the past decade, supported by a low payout ratio of 35.4%. However, the dividend yield of 3.15% is below Hong Kong’s highest level. Recent H1 2024 earnings showed increased sales (CNY4.05 billion) and net profit (CNY428.75 million), but free cash flow does not cover the dividend well, raising concerns about long-term sustainability.

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

Review: Zhongsheng Group Holdings Limited, an investment holding company, focuses on the sale and service of motor vehicles in the People’s Republic of China and has a market capitalization of HKD 34.13 billion.

Operations: The company’s revenue segments include the sale of motor vehicles and the provision of related services, generating CN¥179.81 billion.

Dividend rate: 5.1%

Zhongsheng Group Holdings’ dividend payments have been volatile over the past decade, despite being covered by earnings (49% payout ratio) and cash flow (51.6% cash payout ratio). The latest earnings for the first half of 2024 showed a decline in net income to CNY 1.58 billion from CNY 3 billion last year, raising concerns about the sustainability of future dividends. The company is trading at a significant discount to estimated fair value, but profit margins have fallen from 3.6% to 2%.

To sum it all up

• Use our screener to get a detailed look at all the top dividend stocks for 2036.

• Have you invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay up to date with our alerts on any critical updates to your stocks.

• Maximize your investing potential with Simply Wall St, a comprehensive app that offers free global market information.

Are you looking for alternative options?

This article by Simply Wall St is of a general nature. We comment based on historical data and analyst forecasts, using only an unbiased methodology, and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative content. Simply Wall St has no position in any of the stocks mentioned.

The companies discussed in this article are SEHK:1599 SEHK:1666 and SEHK:881.

Have an opinion on this article? Worried about content? Contact us directly. You can also send an email to [email protected]