Receipt share 2026｜Latest quality dividend selection strategy
Dividend‑Yielding Stocks 2026 | How to Use High‑Yield Hong Kong Stocks to Support Your Retirement + Uncle Lu's Dividend Stock Recommendations
For those who will no longer have active income after retirement, a steady and reliable stream of passive income can provide ample cash flow, helping to sustain your post‑retirement lifestyle. Investing in relatively stable dividend‑paying stocks is one way to boost your passive income. Today, we'll introduce dividend‑yielding stocks listed on the Hong Kong stock market.
What are income-generating stocks?
Income‑generating stocks—also known as dividend stocks—are shares of companies that regularly distribute dividends to their shareholders. As such, dividend stocks are typically issued by firms with stable operations. On the positive side, they offer a steady stream of dividend income; on the downside, they can cap the stock's growth potential. So what other advantages and disadvantages do dividend stocks have?
What are the advantages of income-generating stocks?
A stable source of income: Companies that pay dividend‑yielding stocks can consistently distribute dividends because they possess steady profitability. When a company generates consistent, reliable earnings, investors can maintain a corresponding stream of income.
Long-term capital preservation and appreciation potential: Dividend‑paying stocks typically belong to well‑established, stable companies. Their share prices tend to be relatively less volatile, and when earnings grow, they may increase dividends, which in turn can boost stock prices and deliver capital gains.
Mitigating Market Volatility: Because investors have a steady demand for dividends, income‑generating stocks typically exhibit lower price volatility, enabling them to better withstand market downturns.
What should you watch out for when investing in dividend-paying stocks?
Dividends are not guaranteed: Even if a company maintains a steady dividend payout, the amount of the dividend cannot be assured. Should the company reduce or suspend dividends due to an economic downturn or declining earnings, this could adversely affect investors' income.
Limited growth potential: Precisely because income‑generating stocks are typically held by more mature companies, their growth prospects are likewise relatively limited.
Uncle Lu's dividend‑stock recommendations
A veteran stock commentator known as "Uncle Lu"Chen YongluAt the "Futu Investment Expo" investment strategy session in March 2025, titled "Hong Kong Stock Market Analysis: Which Dividend Stocks Are Worth Watching in the Rate-Cutting Cycle?", it was mentioned that "when evaluating dividend stocks, one should pay attention to the company's prospects, the potential future dividend payouts, whether the company engages in share buybacks, and its business sustainability. Investing in dividend stocks requires a long-term perspective; remember to factor in net dividends, and also consider your overall portfolio." Uncle Lu stated that most of his wealth comes from dividend income.
AndFund Investment Director Lin Jiaqi (KK)At the sharing session, it was also emphasized that when investing in dividend‑paying stocks, one should carefully assess a company's cash flow and debt‑to‑equity ratio to determine whether it has the financial capacity to distribute dividends, while also comparing its dividend history over the past five years. KK noted: "This year, we are optimistic about domestic banking stocks, which offer strong stability—particularly sectors like telecommunications and China‑specific valuation themes—and suggest pairing them with local public‑sector stocks to diversify risk."
Stable Dividend Stock Picks: Bank Stocks
Bank stocksThey typically boast stable income streams, diversified financial operations, strong financial performance, and robust risk resilience. As the cornerstone of the financial system, they offer relatively steady dividend payouts, high dividend yields, strong liquidity, and substantial policy support.
Stocks | Per lot entry fee (Hong Kong dollars, as of market close on February 6, 2026) | Dividend Yield TTM |
53,920 | 3.77% | |
6,490 | 5.14% |
A low-barrier option for income: utility stocks
Utilities stocks refer to shares of companies that provide essential public services, such as electricity, natural gas, water, and other infrastructure-related offerings, including Hong Kong Electric and China Gas. Because these services are indispensable in everyday life, demand remains largely unaffected by economic cycles, making this sector relatively stable.
Stocks | Per lot entry fee (Hong Kong dollars, as of market close on February 6, 2026) | Dividend Yield TTM |
37,500 | 4.16% | |
31,100 | 4.53% |
Dividend-paying stocks: Insurance industry
Insurance industryIt has been redefined as an "alternative dividend asset," with some companies offering attractive dividend yields and benefiting from shifts in the interest-rate environment.
Stocks | Per lot entry fee (Hong Kong dollars, as of market close on February 6, 2026) | Dividend Yield TTM |
6,045 | 4.67% | |
2,075 | 4.87% |
High-Yield Hong Kong Stocks: Energy Sector
The energy sector boasts robust cash flows, with leading companies firmly entrenched in their market positions; these firms distribute substantial dividends and, benefiting from higher average oil prices, offer attractive dividend yields.
Stocks | Per lot entry fee (Hong Kong dollars, as of market close on February 6, 2026) | Dividend Yield TTM |
24,020 | 5.75% | |
2,075 | 4.87% |
Dividend Yield: Telecommunications Sector
The telecommunications sector boasts stable revenue, robust cash flow, substantial dividend payouts, inelastic demand, and strong defensive characteristics.
Stocks | Per lot entry fee (Hong Kong dollars, as of market close on February 6, 2026) | Dividend Yield TTM |
40,100 | 6.63% | |
10,140 | 6.06% |
Hong Kong High-Yield Stocks: Consumer Sector
Stocks | Per lot entry fee (Hong Kong dollars, as of market close on February 6, 2026) | Dividend Yield TTM |
4,720 | 11.58% | |
820 | 5.41% |
High-Yield Income Stocks: Hong Kong Real Estate Investment Trusts
Real estate can be regarded as a perennial industry in Hong Kong, and moreover, in accordance with the regulations of the Securities and Futures Commission,Real Estate Investment Trusts (REITs)It is required to distribute at least 90% of its income as dividends to investors, typically offering relatively high returns.
Stocks | Per lot entry fee (Hong Kong dollars, as of market close on February 6, 2026) | Dividend Yield TTM |
31,980 | 5.57% | |
3,490 | 7.43% |
*As of the market close on February 4, 2025, the stock screener on the Futubull app has selected stocks based on the following criteria (sorted by market capitalization): market cap of HK$5 billion or more; dividend yield (LFY) of 4% or higher; with the top two stocks ranked by market capitalization.
Other income‑generating options: Dividend‑paying funds
Dividend-paying funds typically distribute periodic payouts to investors, such as quarterly or annually. Investors can choose to receive these distributions in cash or reinvest them back into the fund to purchase additional shares. In general, dividend-paying funds are predominantly equity and bond funds.
Fund | Year-to-date increase (as of January 22, 2026) |
Fidelity Funds – Global Dividend Fund MDis | 19.74% |
Blackrock Systematic Analysis Global Equity High-Yield Fund MDis | 12.22% |
An Fund – Global Dynamic Dividend Fund MDis | 9.30% |
Data source: Futubull. As of the market close on January 22, 2026, the screening criteria were: trading currency in Hong Kong dollars, and funds that distribute dividends monthly, quarterly, semi-annually, annually, or invest globally, with the three largest funds by size included. | |
Futu helps you uncover high-yield stocks with strong growth potential.
In addition to the high-dividend list mentioned above, investors can also check a stock's historical dividend records and dividend calendar anytime on the Futubull app. This allows them to identify companies that have consistently paid dividends in the past and make timely investments before the ex-dividend date!
How to pick high-yield stocks with strong fundamentals?
A high dividend yield doesn't necessarily mean it's a good investment; there's always the risk of earning dividends while losing capital. In addition to looking at the dividend yield, you should also consider the following seven key criteria:
1. Whether dividends can be paid on a sustainable basis
A good dividend stock should have a consistent history of dividend payments, ideally maintaining steady payouts over the past several years without any interruptions or cuts.
2. Whether the company maintains sound financial health: stable profitability and low debt levels.
To assess a company's financial health, you should examine whether its earnings are stable and whether it maintains a low level of debt.
If earnings are stable, it indicates that the company can sustain dividend payments; a low debt-to-equity ratio suggests that the company's financial burden is manageable and will not impair its ability to pay dividends.
3. Is there sufficient cash flow?
Sufficient cash flow means the company has the ability to pay dividends.
4. Does the dividend have growth potential?
In addition to assessing whether a stock pays stable dividends, it's also important to evaluate whether those dividends exhibit consistent growth. Sustained dividend increases can help hedge against inflation and boost real returns.
5. Industry and Market Position
When industry demand is sufficiently stable, the dividends of such income‑generating stocks tend to remain relatively steady; moreover, companies with a competitive edge in the market are better positioned to sustain stable earnings and dividend payouts.
6. Is the shareholder return policy transparent and reasonable?
You can assess whether the company's shareholder‑return policy—such as its dividend payout ratio—is transparent and reasonable. If so, investors are more likely to feel confident about investing.
7. Does the economy have resilience to risks?
During economic downturns or market volatility, quality dividend stocks should be able to maintain relatively stable income and dividend payouts.
How to Buy High-Yield Hong Kong Stocks
Go to the official website of Futubull and register a new account.(Register Now)
Simply open a comprehensive account and make a deposit to start trading. Click below to open an account as a new customer and enjoy a welcome bonus of over one thousand yuan!
Click [Market] > [Hong Kong Stocks] to find the high-dividend yield ranking and identify your preferred high-yield Hong Kong stocks. Futu offers commission-free trading for all Hong Kong stock purchases!
Enter the face value you wish to purchase and your desired buy price, then place your order based on the "Reference Ask Price." (This price is for reference only; the actual execution price may differ.)
Click [Buy], enter your trading password, and after the order is successfully submitted, please wait patiently for the trade to be matched. The execution price will not exceed your order price.
