HSI-Listed SITC Stands Out With a 19% Dividend Yield

Hang Seng Index (HSI)-listed SITC International Holdings Co. Limited (HK:1308) boasts a dividend yield of 19%, much higher than the industry average of 1.64%. The company is a consistent dividend payer in the Hong Kong market and has also raised its payments over the years. However, the company’s interim dividend in 2023 was impacted by its lower earnings due to a tough business backdrop.

SITC is a transportation and logistics company providing its services in the Asian markets.

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What is the Dividend of SITC International Holdings?

SITC International pays dividends twice a year, interim and final. The company paid an interim dividend of HK$0.6 per share in September 2023. This was lower than the interim payment of HK$2.4 per share in 2022, reflecting the impact of a decline in the company’s earnings.

Nonetheless, the company has drastically increased its dividends over the years, from HK$0.44 per share in 2019 to HK$4.0 in 2022.

First-Half Results Affected by a Downturn

In the first half of FY23, the company reported a 44.5% year-over-year decline in its revenue to $1.25 billion. This decline was mainly due to lower shipping volumes and average freight rates. The gross profits were also down by over 70% in the first half.

So far in 2023, the container shipping and logistics market has struggled with demand and supply gap, leading to an industry-wide downturn. However, the company remains committed to optimizing its operational model, adhering to sea-land integrated services.

The SITC International share price has been trading down so far in 2023, at a loss of 25%.

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