Investors Tout Long-Term Hold of CK Infrastructure on 29-Year Dividend Growth Streak
SingTao · 1 SOURCES1 day ago2 MIN
Summary
CK Infrastructure Holdings (CKIH, stock code 1038) has won enduring popularity among Hong Kong investors by maintaining 29 consecutive years of dividend growth—a rare achievement among global listed companies. Two prominent market commentators, Chong Yun Chong and Lee Sing Yeung, have both publicly endorsed long-term holding of the stock, citing its stable utility businesses, disciplined capital recycling, and consistent payout expansion .
Key Points
- Chong Yun Chong invested in CKIH 30 years ago when it was spun off and listed in July 1996, and has held the position continuously, collecting dividends every year .
- Since its IPO price of HK$12.65, CKIH has distributed a cumulative HK$46.15 per share in dividends—nearly four times the original listing price .
- Shareholders who bought at the IPO and reinvested all dividends would have earned total returns exceeding 15 times, translating to an annualized return of approximately 10% .
- The stock now trades around HK$65, near its one-year high, with a dividend yield of about 4%, and Lee Sing Yeung notes this is lower than the 4.25% floor rate on Silver Bonds .
- Lee Sing Yeung has held CKIH for more than 10 years and buys additional shares monthly, drawn by its stable business profile and uninterrupted dividend growth record .
- Both investors stress that CKIH's appeal lies in future dividend growth rather than the current yield, with Chong calling it "an excellent income stock" .
- Lee Sing Yeung expects CKIH to use proceeds from asset disposals to pursue acquisitions at depressed prices, potentially boosting earnings and dividend capacity within one to two years .
Why It Matters
CKIH's track record illustrates how Hong Kong-listed infrastructure firms have successfully expanded globally by acquiring utility assets in geopolitically stable markets while returning cash to shareholders. For local retail investors seeking steady income in a rising-rate environment, the stock's ability to sustain dividend growth despite market headwinds offers a compelling case .
CKIH's track record illustrates how Hong Kong-listed infrastructure firms have successfully expanded globally by acquiring utility assets in geopolitically stable markets while returning cash to shareholders. For local retail investors seeking steady income in a rising-rate environment, the stock's ability to sustain dividend growth despite market headwinds offers a compelling case .