Yum China’s Surprise: A 30% Dividend Boost!

Our goal with this email is simple: to help you build your ideal dividend portfolio—a portfolio that:

1. Pays you the highest dividend Growth possible,
2. Keeps the lowest Risk of cuts or losses, and
3. Offers the best Value for your investments.

That’s why we focus on Dividend Growth Stocks. Growth , Risk, and Value are the three pillars of our blueprint to help you succeed. You can download here and build that portfolio

Get instant access to our data-driven dividend stock list and 3-Pillar filtering tool—no more guesswork, just a clear path to steady income.

All Hong Kong Dividend Growth stocks.
Hours of research -just 1 click away

Reading time of this email: 2 minutes. You will come out wiser, trust me.

• Dividend growth stock of the week.
• Something in the 25 Highest Yield.xls
• Metric of the week: P/E
• Updated just now: links you cannot miss out on:

Dividend growth stock of the week.

Yum China (HKG:9987) just delivered great news—a 30% dividend increase. That’s an impressive raise, but with a current yield of around 1.5%, it might not seem particularly exciting at first glance.

However, let’s take a different perspective. If we factor in the company’s five-year average dividend growth rate and combine it with the current yield (hypothetically), the result suggests a potential yield-on-cost of 10% within just six years. That’s a compelling outlook for long-term investors who prioritize both stability and dividend growth. Sometimes, the real value isn’t just in today’s yield but in the trajectory of future income.

Yield: 1.5%
P/E: 25

5-yr average div growth: 36%
Dividend Payout Ratio : 26%

Let me know what you see.

Something in the list of the 25 Highest Yield Dividend Growth Stocks.xls:  download here

Hang Lung Properties (HKG:0101) Drops Off the List

Not all dividend stocks are created equal, and we hold a high standard for what qualifies as a true dividend growth stock. Hang Lung Properties (HKG:0101) reduced its dividend in 2024 with 33%, which is a red flag if you go for go a predictable compounding dividend income.

As a result, it will be removed from our Directory of All Hong Kong Dividend Growth Stocks. The goal of the directory is to help investors focus only on companies with a consistent track record of dividend increases—not just high yields, but sustainable and growing income over time.

This is why keeping a close eye on Risk as in dividend reliability matters.

Metric of the week: P/E
In the most right column you’ll find P/E. We talked about that in previous newsletters so let’s dive a little deeper today.

Why Price-to-Earnings (P/E) ratio is a great place to start? It tells you how much investors are willing to pay for each dollar of a company’s earnings. A P/E of 20 or lower is generally considered a good value—it suggests the stock isn’t overpriced. A high P/E might mean investors expect big growth, but it can also signal overvaluation. On the other hand, a very low P/E isn’t always a bargain—sometimes it reflects weak earnings or business trouble.
That’s why P/E is just a starting point. It helps filter out overpriced stocks, but real value comes from looking deeper—checking dividend stability, earnings growth, and financial strength. A good dividend growth stock isn’t just cheap—it’s worth owning for the long haul.

If you look at the list of 25 highest yield Dividend Growth stocks download here, you’ll see a few negative ones.

——————————————————————————–

Updated just now: links you cannot miss out on:
– NEW 10 Key questions about P/E ratio
– Dividend growth and Blue Chip stocks that go Ex-Dividend soon.
– Download 25-Highest-yield Dividend Growth Stocks.
– What is P/E and why is it important?

Get instant access to our data-driven dividend stock list and 3-Pillar filtering tool
—no more guesswork, just a clear path to steady income.

All Hong Kong Dividend Growth stocks.
Hours of research -just 1 click away.

Petra @ Hong Kong Dividend Stocks

PS: Do you follow HKDS on X.com and Facebook already?

The Blue Print Clarity on the 3 Pillars: Get a simple, step-by-step breakdown of the three key criteria that separate the long-term winners from the rest of the pack. No guessing—just a proven framework   The Best Part? It’s completely free. No catch—just honest, data-driven insights that arm you with a consistent approach to dividend growth investing.

Build that portfolio

Leave this field empty if you're human: