Top 3 Chinese Dividend Stocks To Enhance Your Portfolio

In a week marked by optimism over Beijing's comprehensive support measures, Chinese stocks experienced a significant surge, with the Shanghai Composite Index and CSI 300 Index both posting notable gains. Amid this backdrop of market recovery, dividend stocks in China present an appealing opportunity for investors seeking to enhance their portfolios through stable and potentially rewarding income streams.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Midea Group (SZSE:000333)	3.94%	★★★★★★
Lao Feng Xiang (SHSE:600612)	3.10%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	3.95%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.13%	★★★★★★
China Merchants Bank (SHSE:600036)	5.24%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.18%	★★★★★★
Changchun High-Tech Industry (Group) (SZSE:000661)	4.09%	★★★★★★
Zhejiang HangminLtd (SHSE:600987)	3.80%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.49%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	4.91%	★★★★★★

Click here to see the full list of 178 stocks from our Top Chinese Dividend Stocks screener.

We'll examine a selection from our screener results.

Sumec (SHSE:600710)

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

Overview: Sumec Corporation Limited operates in the supply and industrial chain business in China with a market capitalization of CN¥12.01 billion.

Operations: Sumec Corporation Limited's revenue segments include supply and industrial chain operations in China.

Dividend Yield: 3.6%

Sumec's dividend payments are well-supported by both earnings and cash flows, with a payout ratio of 39.3% and a cash payout ratio of 28.5%. The company offers an attractive dividend yield at 3.59%, placing it in the top quartile of Chinese dividend payers. However, its seven-year track record reveals volatility in dividends, making reliability a concern. Recent earnings showed growth in net income to ¥570.41 million despite a drop in sales, indicating resilience amidst market challenges.

• Get an in-depth perspective on Sumec's performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Sumec shares in the market.

Comefly Outdoor (SHSE:603908)

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

Overview: Comefly Outdoor Co., Ltd., operating as MOBI GARDEN, focuses on the research, design, development, and sale of outdoor products in China, with a market cap of CN¥2.11 billion.

Operations: Comefly Outdoor Co., Ltd. generates revenue primarily through its Apparel segment, which accounts for CN¥1.43 billion.

Dividend Yield: 3.8%

Comefly Outdoor's dividend yield of 3.79% ranks in the top 25% of Chinese dividend payers, supported by an earnings payout ratio of 89.2% and a cash payout ratio of 74.8%. Despite being relatively new to dividends with only seven years of payments, its dividends have been stable and covered by both earnings and cash flows. Recent half-year results showed a decline in sales to ¥834.44 million, with net income falling to ¥79.14 million year-over-year.

• Dive into the specifics of Comefly Outdoor here with our thorough dividend report.
• According our valuation report, there's an indication that Comefly Outdoor's share price might be on the cheaper side.

JinGuan Electric (SHSE:688517)

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

Overview: JinGuan Electric Co., Ltd. focuses on the research, development, and manufacture of lightning arresters in China, with a market cap of CN¥2 billion.

Operations: JinGuan Electric Co., Ltd.'s revenue is primarily derived from its Electric Equipment segment, totaling CN¥655.81 million.

Dividend Yield: 3.4%

JinGuan Electric's dividend yield of 3.37% is competitive within China's top 25% of dividend payers. Despite a short history of two years and some volatility, dividends are covered by earnings with a payout ratio of 69.4% and by cash flows at 59.9%. Recent buybacks totaling ¥20.03 million may support future stability, although the company's track record remains unstable with past fluctuations in payments. Earnings have shown positive growth, which could sustain future payouts.

• Unlock comprehensive insights into our analysis of JinGuan Electric stock in this dividend report.
• In light of our recent valuation report, it seems possible that JinGuan Electric is trading behind its estimated value.

Taking Advantage

• Click through to start exploring the rest of the 175 Top Chinese Dividend Stocks now.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Curious About Other Options?

• 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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