I like to track companies that give out dividends to generate investment ideas. In the next few days, there are some Hong Kong-listed companies that are going ex-dividend. Let’s check out three of them.
(Note: “Ex-dividend” means that you have to own the company’s shares before a particular date (the ex-dividend date) if you wish to receive its dividends.)
Wednesday, 18 September 2019
The first company on the list is Shougang Fushan Resources Group Ltd (SEHK: 639), which is going ex-dividend on Wednesday. Shougang Fushan is an owner and operator of three coking coal mines in Liulin County, Shanxi Province, China. The company is dishing out HK$0.085 per share for its 2019 first-half.
For the six months ended 30 June 2019, Shougang Fushan’s revenue tumbled 1% year-on-year to HK$1.96 billion. However, its bottom-line inched up by 0.3% to HK$640 million. The lower revenue was largely due to the depreciation in the Chinese yuan to the HK dollar. Excluding the depreciation, turnover in Chinese yuan would have increased by 5%.
Shougang Fushan’s share price currently is at HK$1.82, giving it a price-to-earnings ratio of around 9 and a high dividend yield of 9.3%. Dividend investors might want to dig up more on this company to determine whether the high yield is sustainable though.
Thursday, 19 September 2019
Sunlight Real Estate Investment Trust (SEHK: 435) is pencilled in to go ex-dividend on Thursday. Sunlight REIT is the first Hong Kong REIT with exposure to both the commercial and retail sectors. The REIT is giving out a distribution per unit (DPU) of HK$0.141 for the fourth-quarter of its fiscal year ended 30 June 2019.
For the year, revenue grew 4.1% year-on-year to HK$850.7 million, net property income increased by 5.6% to HK$682.5 million, while distributable income climbed 3.7% to HK$467.3 million. The revenue growth was on the back of by higher average rental reversion and full-year contribution from the recently-purchased office building, The Harvest.
Sunlight REIT has given its investors plenty to cheer about over the years as its DPU has risen consistently. For the latest year, DPU went up by 3% year-on-year to HK$0.273, which includes the final dividend of HK$0.141 per share.
Source: Sunlight REIT 2019 earnings results (Note: figures in HK cents)
Thursday, 19 September 2019
Hang Seng Index ETF (SEHK: 2833) is the final company on my list, and it is going ex-dividend on Thursday.
The exchange-traded fund (ETF) is technically not a company but is a collection of companies made into a fund. The ETF seeks to replicate the performance of the Hang Seng Index, and it provides investors with instant exposure to the Hong Kong market. A competitor to this ETF is the Tracker Fund of Hong Kong (SEHK: 2800) (more information here), which has a longer listed history than the Hang Seng Index ETF.
As of 13 September 2019, AIA Group Ltd (SEHK:1299) has the largest weighting in the ETF, followed by HSBC Holdings plc (SEHK:5), and Tencent Holdings Ltd (SEHK:700).
Hang Seng Index ETF is dishing out HK$0.25 per unit for its third-quarter. At its current unit price of HK$27.85, it has a distribution yield of 3.9%.