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Hong Kong Exchanges and Clearing is a Solid Dividend Stock. Here’s Why

Hong Kong Exchanges and Clearing Limited (SEHK: 388), or HKECL, operates a stock market and futures market in Hong Kong.

The company has recently come on to my radar as I’m building a watchlist of reliable dividend stocks. Here’s one simple chart to demonstrate why the company is such a great dividend stock.

The chart

Source: Hong Kong Exchanges and Clearing’s website

There are three things to note from the chart above.

Firstly, HKECL has consistently paid a dividend over the last ten years.

Secondly, not only has the company continuously paid a dividend, it has grown its dividend per share (DPS) over the decade from HK$3.93 in 2009 to HK$6.71 in 2018. This translates into a compound annual growth rate (CAGR) of 6.1%.

Last but not least, the company has maintained its dividend payout ratio at 90% over the decade.

Conclusion

Overall, HKECL is a company that dividend investors can pay attention to, mainly due to its strong track record of growing its DPS over a long time period.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.