As Chinese stocks experienced a retreat amidst concerns over deflationary pressures and mixed economic signals, investors are keenly watching for opportunities in the dividend-paying segment. In such a volatile market, good dividend stocks can provide stability and income, making them an attractive option for those looking to navigate uncertain times.
Top 10 Dividend Stocks In China
| Name | Dividend Yield | Dividend Rating |
| Midea Group (SZSE:000333) | 4.89% | ★★★★★★ |
| Changhong Meiling (SZSE:000521) | 3.69% | ★★★★★★ |
| Wuliangye YibinLtd (SZSE:000858) | 3.66% | ★★★★★★ |
| Kweichow Moutai (SHSE:600519) | 3.48% | ★★★★★★ |
| Ping An Bank (SZSE:000001) | 7.18% | ★★★★★★ |
| Huangshan NovelLtd (SZSE:002014) | 6.11% | ★★★★★★ |
| China South Publishing & Media Group (SHSE:601098) | 4.40% | ★★★★★★ |
| HUAYU Automotive Systems (SHSE:600741) | 5.10% | ★★★★★★ |
| Chacha Food Company (SZSE:002557) | 3.68% | ★★★★★★ |
| Zhejiang Jiaxin SilkLtd (SZSE:002404) | 5.59% | ★★★★★★ |
Click here to see the full list of 259 stocks from our Top Chinese Dividend Stocks screener.
Let’s review some notable picks from our screened stocks.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Hisense Visual Technology Co., Ltd. is involved in the research, development, production, and sale of display products and related industry chain products both in China and internationally, with a market cap of CN¥23.19 billion.
Operations: Hisense Visual Technology Co., Ltd. generates revenue primarily from its multimedia segment, which amounts to CN¥54.83 billion.
Dividend Yield: 4.5%
Hisense Visual Technology’s dividend payments are covered by earnings with a payout ratio of 53.5%, but not by free cash flows, which shows a high cash payout ratio of 123.3%. Although the dividend yield is attractive at 4.45% and in the top 25% of CN market payers, the dividends have been volatile and unreliable over the past decade. The company recently scrapped plans to spin off a unit for flotation due to external market changes.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Zhejiang Huada New Materials Co., Ltd. specializes in the R&D, production, and sale of multi-functional color-coated and hot-dip galvanized aluminum sheets in China, with a market cap of CN¥3.39 billion.
Operations: Zhejiang Huada New Materials Co., Ltd. generates revenue primarily from the sale of multi-functional color-coated and hot-dip galvanized aluminum sheets in China.
Dividend Yield: 3%
Zhejiang Huada New Materials’ dividend payments are covered by earnings and cash flows, with payout ratios of 30.8% and 49%, respectively. However, the dividends have been volatile and unreliable over the past three years despite a recent increase. The stock trades at 14.1% below its estimated fair value, while its yield of 3.02% places it in the top 25% of CN market payers. An upcoming shareholders’ meeting on June 24 could impact future dividends.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Changhong Huayi Compressor Co., Ltd., with a market cap of CN¥4.25 billion, develops, manufactures, and sells various compressors both in China and internationally through its subsidiaries.
Operations: Changhong Huayi Compressor Co., Ltd. generates revenue through the development, manufacturing, and sale of various compressors in both domestic and international markets.
Dividend Yield: 4.1%
Changhong Huayi Compressor’s dividend payments have increased over the past decade but remain volatile. The company maintains a reasonable payout ratio of 41%, with dividends covered by earnings and cash flows (51.1%). Recent earnings show growth, with net income rising to CNY 226.83 million for H1 2024 from CNY 164.78 million a year ago, despite a drop in sales. The stock trades at good value compared to peers, with a P/E ratio of 10x and a dividend yield in the top tier of the CN market at 4.1%.
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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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