In such a low interest-rate environment, which is widely expected to remain in the foreseeable future, investors are starting to pick stocks for their dividend payouts rather than price rise potential.

At current lending rates, it makes sense for investors to borrow from banks against their properties for investment in high-dividend payout stocks. They can use part of the income from the dividends to service their debt and pocket the difference.

If they choose the right stocks, especially those in the banking, utilities and energy sectors, they can keep the risk of a massive price fall to the minimum. Of course, they have to forego the upside potential of the speculative stocks. But, in these uncertain times, punting the volatile stock market for quick gains is a game better reserved for professionals playing with other people's money.

Those less adventurous dividend seekers have found a new stock market darling, HSBC. It's like reigniting an old flame. HSBC used to be the bluest among the blue chips that nearly every investor felt obliged to include in his or her portfolio.

But the love affair between investors and their banks was abruptly shattered several years ago by nagging business and legal problems that haunted some of HSBC's overseas operations, including those in Europe and South America. A barrage of negative publicity and damming analyst reports had pushed the bank's share price down to below the so-called "psychological" defense line at HK$50 apiece.

Since then, much of those problems have been largely resolved, albeit at considerable costs to the bank. HSBC has also indicated it would maintain its dividend payout in coming years and mount a share buyback program that's seen capable of boosting its share price.

It did. HSBC shares have outperformed the stock market in recent weeks and are still going strong. Its share price rose to about HK$60 on Monday, following an upsurge in the past two trading days. Even at current prices, the dividend payout is estimated at about 5 percent a year.

If the latest price increases make you wonder whether the stock is worth pursuing, consider this. HSBC is regarded in Hong Kong as the equivalent of gilt-edged securities. Many gilt-edged securities around the world are trading at close to zero yields.

Now, make your pick.

(HK Edition 09/06/2016 page2)