To Keep Reading
Investors are always on the lookout for companies that raise their dividends, as such companies are sending a signal that they are both willing and able to dole out increasing amounts of cash to reward shareholders.
Dividends not only increase an investor’s passive income flow but are also an indication of better prospects to come for the business.
Blue-chip companies are among the most reliable dividend-paying stocks and continue to do well despite the current tough macro-economic environment. So, here are four blue-chip companies that have recently raised their dividends and which income investors can consider adding to their portfolio.
1. Ping An Insurance
Ping An Insurance Group Co Ltd (SEHK: 2318) is a personal financial services provider. The group provides insurance, banking, investment and internet finance products and services. As of 30 June 2019, Ping An had an astonishing 196 million retail customers and 576 million internet users.
For H1 2019, Ping An’s revenue increased by 17.2% from RMB 588.9 billion (US$83.4 billion) to RMB 690.2 billion, while earnings per share improved from RMB 3.33 to RMB 4.12. Its interim dividend per share increased by 21% year-on-year from RMB 0.62 to RMB 0.75.
2. CK Infrastructure Holdings Ltd
CK Infrastructure Holdings Ltd (SEHK: 1038), or CKI, is a global infrastructure company with infrastructure investments and developments in different parts of the world. These include investments in energy, transportation (toll roads), water and waste management. The group’s investments and operations span Hong Kong, China, the UK, Europe, Australia, and New Zealand.
For FY 2018, the group reported yet another rise in dividend per share from HK$2.38 to HK$2.43, for a year-on-year increase of 2.1%. Investors should also note that this is CKI’s 22nd consecutive dividend increase, an extremely impressive feat for any company.
3. Hong Kong Exchanges and Clearing Limited
Hong Kong Exchanges and Clearing Limited (SEHK: 388), or HKEX, is Hong Kong’s sole stock exchange operator. The group provides world-class facilities for trading and clearing of securities, and also derivatives in equities, commodities, fixed income and currencies. HKEX also owns the Hong Kong Futures Exchange and the London Metal Exchange.
For FY 2018, HKEX reported a 20% year-on-year jump in revenue and other income to HK$15.9 billion (US$2 billion), while profit attributable to shareholders surged by 26% year-on-year to HK$9.3 billion. The total annual dividend tracked the increase in net profit and was hiked by 24% year-on-year from HK$5.40 to HK$6.71.
4. Sun Hung Kai Properties Limited
Sun Hung Kai Properties Limited (SEHK: 16), or SHK, is a property developer and investor. The group operates and manages various property types including hotels, shopping malls, residential, car parks and transportation infrastructure. SHK’s business is principally centred on both Hong Kong and Mainland China.
The group reported an attributable net profit of HK$32.4 billion, up 6.5% year-on-year from HK$30.4 billion. The company’s dividend per share was increased from HK$4.65 to HK$4.95, also an increase of 6.5% year-on-year.
Thinking about investing in Hong Kong stocks? Discover 4 simple ways to turn it into your own “money tree”. We outline practically everything you need to know about the Hong Kong market in our latest report. Click here to see how you can grab your FREE copy of “A Foolish Guide for Hong Kong Investors” today.
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Hong Kong contributor Royston Yang doesn’t own shares in any companies mentioned.