With inflation trends looking mixed, bond yields adjusting and energy shocks keeping nerves on edge, many investors are again paying attention to steady income rather than quick gains. That is where the Dividend Powerhouses screener comes in. It focuses on companies offering more than a 5% dividend yield that is described as well covered, growing and stable. For anyone trying to build a more reliable cash flow from equities, this kind of discipline can help filter out potential traps. In this article, you will see three of the strongest candidates that currently pass this Dividend Powerhouses screen.
CNOOC (SEHK:883)
Overview: CNOOC is a Hong Kong based oil and gas producer that explores, develops and produces offshore crude oil and natural gas in key Chinese waters like the Bohai and South China Seas, as well as through interests in assets across Asia, Africa, the Americas, Oceania and Europe, selling its output globally. It also has activities in oil sands, unconventional gas and shale resources, and operates through a listed vehicle that is majority owned by its parent, CNOOC (BVI) LTD.
Market Cap: HK$1.11t
CNOOC stands out on this Dividend Powerhouses screen because it combines sizeable offshore production, low all in costs below US$27 per barrel of oil equivalent and a history of high payout ratios, together with recent quarterly results that showed higher sales and net income alongside rising production in both China and overseas projects. At the same time, you need to weigh its heavy focus on traditional oil and gas, exposure to Chinese regulation and weather related risks in offshore fields, and the pressure that climate policies and ESG expectations can place on long term margins. For income focused investors, a key consideration is how its cash flows, policy support for energy security and expansion projects may influence the dividend profile in the years ahead.
Rising production, low all in costs and high payout ratios make CNOOC look like a pure income machine, but the bigger story may sit inside the 2 key rewards and 1 important warning sign
Telenor (OB:TEL)
Overview: Telenor is a telecom group based in Norway that provides mobile, broadband, TV and cloud based connectivity services to consumers and businesses across the Nordics and Asia, including managed network solutions, IoT services and secure communications for sectors such as maritime, oil and gas and defense.
Operations: Telenor generates most of its revenue from the Nordics segment at NOK 59.1b, with additional contributions from Asia at NOK 12.8b, Amp at NOK 3.6b and Infrastructure at NOK 3.3b, partly offset by eliminations of NOK 4.9b.
Market Cap: NOK 183.3b
Telenor offers a 7.22% dividend yield supported by a broad Nordic and Asian footprint, earnings profitability and portfolio moves in areas such as IoT and fiber. Share buybacks and cost cutting programs support per share metrics. At the same time, the company carries significant debt and faces slower forecast revenue growth of 0.8% per year and expected earnings declines, along with competitive and regulatory pressure in Asian markets. For income orientated investors, the combination of a Nordic core, a reported return on equity of 25.36% and ongoing restructuring raises questions about how sustainable that dividend and cash flow profile could be over time, and how that compares with the risks in its Asian operations and leverage.
Telenor’s high yield, Nordic strength and Asian restructuring story can look like a simple income play. Yet the real tension sits in how cash flows stack up against its 4 key rewards and 2 important warning signs (1 is major!)
Manulife Financial (TSX:MFC)
Overview: Manulife Financial is a Toronto based financial services company that provides insurance, annuities, wealth and asset management, and banking style products to retail, retirement and institutional clients across Canada, the U.S., Asia and other international markets.
Operations: Manulife Financial generates most of its revenue from Global Wealth and Asset Management at CA$7.05b, supported by Asia at CA$4.45b, Canada at CA$3.30b, Corporate and Other at CA$755m and the U.S. at CA$355m.
Market Cap: CA$101.37b
Manulife Financial stands out on this dividend focused screen because it combines a 3.19% yield with a broad, fee rich Global Wealth and Asset Management franchise, growing earnings and exposure to long term themes like retirement savings and Asia’s expanding middle class. Recent moves into private credit and AI enabled tools for advisers aim to build more capital light, recurring fee income. At the same time, sizeable buybacks and regular common and preferred dividends show an active approach to capital returns. On the other side of the ledger, investors need to weigh credit risk in U.S. loan books, regulatory changes such as Hong Kong’s eMPF shift, and execution risk around acquisitions and new leadership. The most interesting question is how these cross currents line up in the 4 key rewards and 1 important warning sign
Manulife Financial’s push into fee based wealth, private credit and AI tools looks like an earnings mix shift many investors are still underestimating. Get the missing context in the analyst forecasts for Manulife Financial
The three dividend stocks covered here are only a starting point, as the full screen of income ideas surfaced 1,922 more companies with equally compelling dividend stories inside the Dividend Powerhouses (3%+ Yield) screener. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter to you so you can filter that full list down to the highest conviction dividend plays for your portfolio.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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