Top Chinese Dividend Stocks To Boost Your Portfolio

In recent weeks, Chinese equities have experienced a downturn as optimism surrounding Beijing's stimulus measures has diminished, with the Shanghai Composite Index and CSI 300 both seeing significant declines. Despite this challenging backdrop, dividend stocks in China can offer investors a source of steady income and potential stability amid market fluctuations. Selecting well-established companies with consistent dividend payouts can be an effective strategy for navigating current economic conditions while enhancing portfolio resilience.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Midea Group (SZSE:000333)	3.91%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.17%	★★★★★★
Changhong Meiling (SZSE:000521)	3.30%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.12%	★★★★★★
Kweichow Moutai (SHSE:600519)	3.11%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.39%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.45%	★★★★★★
Chacha Food Company (SZSE:002557)	3.38%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.81%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.06%	★★★★★★

Click here to see the full list of 207 stocks from our Top Chinese Dividend Stocks screener.

We'll examine a selection from our screener results.

Shede Spirits (SHSE:600702)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Shede Spirits Co., Ltd., along with its subsidiaries, designs, produces, and sells liquor products in China with a market capitalization of CN¥21.69 billion.

Operations: Shede Spirits Co., Ltd. generates its revenue primarily through the design, production, and sale of liquor products within China.

Dividend Yield: 3.3%

Shede Spirits' dividend yield of 3.28% places it in the top 25% of Chinese dividend payers, yet its payments have been volatile over the past decade. Despite a low payout ratio of 49.5%, indicating earnings coverage, dividends are not supported by free cash flow, raising sustainability concerns. Recent financials show declining sales and net income for H1 2024 compared to last year. The company completed a share buyback worth CNY 133.91 million in August 2024.

• Navigate through the intricacies of Shede Spirits with our comprehensive dividend report here.
• Our valuation report here indicates Shede Spirits may be undervalued.

Jiangsu Changshu Rural Commercial Bank (SHSE:601128)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Jiangsu Changshu Rural Commercial Bank Co., Ltd. operates as a regional bank providing financial services in China, with a market cap of CN¥22.07 billion.

Operations: Jiangsu Changshu Rural Commercial Bank Co., Ltd. generates its revenue from various financial services offered within China.

Dividend Yield: 3.1%

Jiangsu Changshu Rural Commercial Bank's dividend yield of 3.11% ranks it in the top 25% among Chinese dividend payers, with a stable but short seven-year history. Its low payout ratio of 19.2% suggests strong earnings coverage, expected to remain sustainable over the next three years at 22.7%. Recent earnings growth supports this outlook, with net interest income and net income increasing for H1 2024 compared to the previous year.

• Take a closer look at Jiangsu Changshu Rural Commercial Bank's potential here in our dividend report.
• In light of our recent valuation report, it seems possible that Jiangsu Changshu Rural Commercial Bank is trading behind its estimated value.

Bros Eastern.Ltd (SHSE:601339)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Bros Eastern Ltd (ticker: SHSE:601339) is involved in the research, development, manufacture, and marketing of dyed mélange yarns, with a market cap of CN¥7.94 billion.

Operations: Bros Eastern Ltd generates revenue primarily from its activities in the dyed mélange yarn industry.

Dividend Yield: 5.6%

Bros Eastern Ltd. offers a dividend yield of 5.6%, ranking in the top 25% among Chinese dividend payers, but its dividends have been volatile over the past decade with poor earnings coverage due to a high payout ratio of 93.9%. Despite improved sales and revenue for H1 2024, net income declined to CNY 232.8 million from CNY 273.17 million last year, highlighting challenges in sustaining dividends through earnings rather than cash flows alone.

• Click to explore a detailed breakdown of our findings in Bros Eastern.Ltd's dividend report.
• Our comprehensive valuation report raises the possibility that Bros Eastern.Ltd is priced lower than what may be justified by its financials.

Make It Happen

• Access the full spectrum of 207 Top Chinese Dividend Stocks by clicking on this link.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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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