Pretty random Strategy: The Dogs of the Hang Seng

[PetravanderVegt]

There are years that this works.
Let's see what 2025 brings.

And here they are, the 2025 Dogs of the Hang Seng!





https://www.hongkongdividendstocks.c...s-on-the-hkex/



Happy New Year.

[shri]

So you've taken the dog of the global indices (not verified.. just shit posting) and found the dogs within that index.

Seriously though will have a read.

[Elefant&Castle]

Most of them score 4* on morningstar.

For comparison here are dogs of the dow 2025 - five big dogs and five small:
https://www.dogsofthedow.com/2025-dogs-of-the-dow.htm

[PLamHK]

There are years that this works.
Let's see what 2025 brings.

And here they are, the 2025 Dogs of the Hang Seng!





https://www.hongkongdividendstocks.c...s-on-the-hkex/



Happy New Year.

I feel that your analysis is flawed. You seem to have calculated the yield for 2024 using the price at the end of the year, not the price at the beginning. The share price of some of these stocks has dropped dramatically to reflect the market's view of future dividend payments. For example, if you take Chow Tai Fook, it paid HK$0.5, which is pretty good at the year end price of $6.73. But really far less special at the 1/1/24 price of 11.52.

[RobRoy]

I feel that your analysis is flawed. You seem to have calculated the yield for 2024 using the price at the end of the year, not the price at the beginning. The share price of some of these stocks has dropped dramatically to reflect the market's view of future dividend payments. For example, if you take Chow Tai Fook, it paid HK$0.5, which is pretty good at the year end price of $6.73. But really far less special at the 1/1/24 price of 11.52.

I guess he just shows what yield was achieved from purchasing first Jan and then holding it through the year. Forward looking yield estimate vs current price is indeed quite a lot more interesting.

Rates are coming down albeit slower than previously anticipated. Its pretty cool that its still easy to build a basket of HK stocks with a forward div yield of around 8%, which is what the market should long term return on average.

[PLamHK]

And the measure that's most of interest to the casual observer with the strategy is how much money do you have at the end of the year when you liquidate.

And your $100K of shares would have been worth $86K. I'm also struggling to replicate your yield figures exactly, but you appear to have neglected the 10% withholding tax on H-share dividends.

Anyway, net net is that having put in $100K on 1/1/24 you would have held (including dividends) somewhat less than $100K on 31/12/2024. So as strategies go, it's about as worthy as those offered by most "financial advisors" in HK.

[shri]

Perhaps this might make more sense from the dogs of dow to dogs of hsi.

It is one of many portfolio ideas out there. No need to be rude. Might work in your life with your friends, not here.

https://en.m.wikipedia.org/wiki/Dogs_of_the_Dow

[Morrison]

And the measure that's most of interest to the casual observer with the strategy is how much money do you have at the end of the year when you liquidate.

And your $100K of shares would have been worth $86K. I'm also struggling to replicate your yield figures exactly, but you appear to have neglected the 10% withholding tax on H-share dividends.

Anyway, net net is that having put in $100K on 1/1/24 you would have held (including dividends) somewhat less than $100K on 31/12/2024. So as strategies go, it's about as worthy as those offered by most "financial advisors" in HK.

I am not into this ( HK stocks ) but from what I have read you also have to factor in handling fees
for receiving dividends ?

I have this “problem” with a UK company where the depositary bank charges a minuscule dividend handling fee as depositary bank for ADRs, I have to calculate it in to know my actual net ROI

[PLamHK]

I am not into this ( HK stocks ) but from what I have read you also have to factor in handling fees
for receiving dividends ?

Yes, but they aren't hugely significant - HSBC (probably the most expensive) charges 0.5% of the amount of the dividend (so a $10,000 dividend becomes $9,950).