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We follow the dividend growth stocks and the Blue Chips of Hong Kong.
The goal of this email is to save you a significant amount of time in your research to find the right stocks that are eligible for your cash flow generating portfolio.
Reading time of this email: 3 minutes. You will come out wiser, trust me
Thank you for all your reactions to last week’s newsletter Let’s hope this one will bring you even more insights.
– Last week what stands out? Whoopie, a new dividend challenger
– Hong Kong Blue Chips: 2 companies that are losing and gaining in 2023 so far.
– The 25 highest yield dividend growth stocks. Refreshed and renewed.
– Hong Kong Dividend Growth Stocks averages on April 23, 2023:
– Great links you can not miss out on
– What stands out?
We welcome a new dividend challenger HKG:0297 Sinofert. They do fertilizers.
And it all looks good:
- Yield 6%
- Dividend growth 1 yr: 18%
- Average DG 5-yr: 30%
- It would take 2 years to get 10% Yield on Costs. (Given 5-yr DG rate of 10% and 9% yield)
- P/E: 5
- Return of Equity 11
All looks good. BUT, only 5 year of increases and a lot of bumps before that. (Look at the chart) And then there is this: Over the last 5 years, dividend only grew when EPS also grew.. Which makes perfect sense and is totally fine, as long as EPS rises. Dividend payout ratio was increased from 30% to 35% and that causes the 30% dividend growth over 2021.
–Hong Kong Blue Chip Stocks
Who is up most since last week? HKG:0981 SMIC up again 23% since last week
Who is up most since Jan 1? HKG:0857 Petrochina an astonishing 47% over 2023 so far.
Who is down most since last week? HKG:9618 JD.com down another 20%
Who is down most since January 1? HKG:9618 JD.com down 33%.
-The 25 highest yield dividend growth stocks
are updated. that .xls file you will find on the free members page (you need to be subscribed to the newsletter to receive this information) and the Champion members page.
In this weeks update of the 25 Dividend Growth Stocks with the highest yield:
What is the extra column this week?
This week the extra column is the 1, 3 and 5-year average dividend growth.
The 5-year average dividend growth is the average annual increase in dividend payments over the past 5 years. It’s a great way to calculate the percentage increase in dividends over time. You can do this by adding up the year-over-year increases in dividends from the past 5 years and dividing by 5.
For instance, let’s take the example of a company that paid dividends of $1 per share in Year 1, $1.10 per share in Year 2, $1.20 per share in Year 3, $1.30 per share in Year 4, and $1.40 per share in Year 5. The 5-year average dividend growth would be 12% ((1.10-1.00)/1.00 + (1.20-1.10)/1.10 + (1.30-1.20)/1.20 + (1.40-1.30)/1.30)/4 * 100%).
Similarly, the 3 and 5-year average dividend growth is the average annual increase in dividend payments over the past 3 or 5 years. To calculate this, you need to add up the year-over-year increases in dividends from the past 3 or 5 years and divide by 3 or 5.
What does average dividend growth tell you?
The average dividend growth can provide important information about a company’s financial health and stability. It indicates how much a company’s dividend payout has increased, on average, over the past 5 years. A consistently increasing dividend payment can signal that a company is growing and generating more profits, which is always a positive sign for investors.
You can download this free file here (you need to be subscribed to the newsletter to receive this information) and see for your self.
Champion Members: in the Directory of all Dividend Growth stocks a column was added where you can see which companies decreased their dividends. Column A Category Dividend Growth / 2023 Dividend Cut.
–Hong Kong Dividend Growth Stocks averages on April 24, 2023,
Of all Hong Kong Dividend Growth stocks:
- The average yield of all companies in the Directory is 5.3% . With the highest yield being 22% and the lowest 0.42%
- Of all these stocks the average 5-year-average-dividend-growth is 18%.
- 1-year-average Dividend growth is 12%
- When we do: yield 5% x growth 18% => 10%-Yield-on-Cost will be in 4 years!!
- Average Price-to-Earnings ratio (P/E) is: 14
Updated links you can not miss out on:
- The latest top 10 Highest Yield Dividend Growth stocks
- Dividend growth and Blue Chip stocks that go Ex-Dividend soon
- Download 25-Highest-yield Dividend Growth Stocks (you need to be subscribed to the newsletter to receive this information)
- Last weeks newsletter
The Directory is included in the Champion Membership and is updated every week. It also contains a user-friendly stock screener that allows you to easily assess the performance of all dividend growth stocks based on specific metrics.
- Dividend Growth,
- Risk of a dividend cut and
- Value of the stock
If you have a question, recommendation, or bright idea, be sure to let me know. Just reply to this email.
Thank you all for the support and have a great week!
Petra @ Hong Kong Dividend Stocks
Kind reminder, this is data, numbers. In no way this is financial advice. (nor legal, nor medical).