Exploring Three Leading Dividend Stocks In China

As global markets navigate mixed signals, with some regions showing signs of economic recovery while others grapple with challenges, China's market presents a unique landscape for investors. Recent data indicates fluctuations in key sectors such as manufacturing and real estate, setting a complex backdrop for evaluating investment opportunities in dividend stocks. In this context, understanding the fundamentals that contribute to a good dividend stock—such as stable earnings, consistent payout histories, and strong financial health—is more crucial than ever. These attributes can provide investors with potential resilience amidst the broader market's uncertainties.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Shandong Wit Dyne HealthLtd (SZSE:000915)	6.15%	★★★★★★
Midea Group (SZSE:000333)	4.60%	★★★★★★
Changhong Meiling (SZSE:000521)	3.41%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.28%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.43%	★★★★★★
Ping An Bank (SZSE:000001)	6.54%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.55%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.16%	★★★★★★
Chacha Food Company (SZSE:002557)	3.16%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.25%	★★★★★★

Click here to see the full list of 208 stocks from our Top Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

Sumec (SHSE:600710)

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

Overview: Sumec Corporation Limited operates in China, focusing on supply and industrial chain services with a market cap of approximately CN¥11.33 billion.

Operations: Sumec Corporation Limited generates its revenue primarily through supply and industrial chain services.

Dividend Yield: 3.8%

Sumec Corporation Limited, trading at a Price-To-Earnings ratio of 10.9x, offers a dividend yield of 3.81%, ranking in the top 25% in the Chinese market. Despite its attractive valuation relative to peers and a forecasted annual earnings growth of 19.27%, Sumec's dividend history over the past seven years shows volatility with significant drops exceeding 20%. The dividends are well-covered by both earnings and cash flows, with payout ratios at 41.2% and cash payout ratios at 40.5%, respectively. Recent financials indicate stable earnings growth with Q1 net income rising to CNY 265.87 million from CNY253 million year-over-year.

• Click to explore a detailed breakdown of our findings in Sumec's dividend report.
• According our valuation report, there's an indication that Sumec's share price might be on the cheaper side.

TangShan Port GroupLtd (SHSE:601000)

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

Overview: TangShan Port Group Co., Ltd operates in transportation and warehousing services in China, with a market capitalization of approximately CN¥25.24 billion.

Operations: TangShan Port Group Co., Ltd primarily generates its revenue from transportation and warehousing services within China.

Dividend Yield: 4.7%

TangShan Port Group Co., Ltd, with a Price-To-Earnings ratio of 12.9x below the CN market average of 29.5x, offers a dividend yield of 4.69%, placing it in the top quartile of Chinese dividend payers. Despite this attractive yield and coverage by earnings and cash flows (payout ratios at 60.8% and 57.9%, respectively), the company's dividend track record over the past decade has been unstable, marked by significant volatility including drops over 20%. Recent earnings show growth, with net income rising to CNY 541.21 million in Q1 from CNY 516.35 million year-over-year, supporting potential sustainability in its dividend payments.

• Take a closer look at TangShan Port GroupLtd's potential here in our dividend report.
• Our valuation report unveils the possibility TangShan Port GroupLtd's shares may be trading at a discount.

HangZhou Everfine Photo-e-info (SZSE:300306)

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

Overview: HangZhou Everfine Photo-e-info Co., Ltd. specializes in the development and manufacture of various photoelectric, biometric, infrared, UV, EMC, and DNA diagnosis products within China, with a market capitalization of approximately CN¥2.64 billion.

Operations: HangZhou Everfine Photo-e-info Co., Ltd. generates its revenue from the sale of photoelectric, biometric, infrared, UV, EMC, and DNA diagnosis products across China.

Dividend Yield: 3.1%

HangZhou Everfine Photo-e-info Co., Ltd. has demonstrated a mixed performance in its dividend offerings, with a current yield of 3.05%, ranking it well within the top 25% of Chinese dividend stocks. However, its dividend history is marred by volatility over the past decade, including significant fluctuations in annual payouts. The dividends are supported by both earnings and cash flows with payout ratios at 88.2% and 56.7%, respectively, indicating reasonable coverage despite the company's unstable track record in consistent payments. Recent corporate activities include a final cash dividend announcement for A shares at CNY3 per 10 shares payable on May 21, 2024, following approval changes to company bylaws during their latest AGM on May 10, 2024.

• Dive into the specifics of HangZhou Everfine Photo-e-info here with our thorough dividend report.
• Upon reviewing our latest valuation report, HangZhou Everfine Photo-e-info's share price might be too pessimistic.

Where To Now?

• Reveal the 208 hidden gems among our Top Dividend Stocks screener with a single click here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Seeking Other Investments?

• 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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