Top Three Chinese Dividend Stocks For July 2024

As of July 2024, China's equity markets have shown mixed performance, with manufacturing data pointing to a sluggish economy yet some sectors like services showing resilience. This context is crucial for investors considering dividend stocks in China, where stability and consistent yield can be particularly appealing amidst broader economic uncertainty.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Shandong Wit Dyne HealthLtd (SZSE:000915)	6.83%	★★★★★★
Midea Group (SZSE:000333)	4.68%	★★★★★★
Changhong Meiling (SZSE:000521)	4.17%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.68%	★★★★★★
Ping An Bank (SZSE:000001)	7.14%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.80%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.78%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.27%	★★★★★★
Chacha Food Company (SZSE:002557)	3.72%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.64%	★★★★★★

Click here to see the full list of 252 stocks from our Top Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Beijing Sifang AutomationLtd (SHSE:601126)

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

Overview: Beijing Sifang Automation Co., Ltd. specializes in providing systems for power transmission, transformation protection, automation, generation, and distribution across China and globally, with a market capitalization of approximately CN¥15.35 billion.

Operations: Beijing Sifang Automation Co., Ltd. generates revenue through the provision of systems for power transmission, transformation protection, automation, generation, and distribution across various markets.

Dividend Yield: 3.3%

Beijing Sifang Automation Ltd. has seen a notable increase in quarterly sales and net income, with sales rising to CNY 1.54 billion from CNY 1.18 billion year-over-year and net income improving to CNY 181.06 million from CNY 141.95 million. Despite a strong dividend yield of 3.25%, which ranks in the top quartile of Chinese dividend payers, the company's dividend history shows volatility and inconsistency over the past decade, raising concerns about the reliability of future payments despite a sustainable payout ratio at 75% and cash flows covering dividends at 39.8%.

• Take a closer look at Beijing Sifang AutomationLtd's potential here in our dividend report.
• Upon reviewing our latest valuation report, Beijing Sifang AutomationLtd's share price might be too pessimistic.

Jinduicheng Molybdenum (SHSE:601958)

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

Overview: Jinduicheng Molybdenum Co., Ltd. is a global producer and seller of molybdenum products, with a market capitalization of approximately CN¥35.65 billion.

Operations: Jinduicheng Molybdenum Co., Ltd. generates its revenues primarily from the production and sale of molybdenum products internationally.

Dividend Yield: 3.6%

Jinduicheng Molybdenum offers a dividend yield of 3.62%, placing it in the top 25% of Chinese dividend payers. Despite this, its dividends have shown volatility over the past decade, with significant annual fluctuations. The company's earnings coverage is robust with a payout ratio of 44.5%, and cash flows also support these payments well at a cash payout ratio of 40.3%. However, recent removals from key indices like the SSE 180 could impact investor perception and stock visibility.

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

L&K Engineering (Suzhou)Ltd (SHSE:603929)

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

Overview: L&K Engineering (Suzhou) Ltd. specializes in providing engineering technical services within China, with a market capitalization of CN¥5.38 billion.

Operations: L&K Engineering (Suzhou) Ltd. generates its revenue primarily through specialized engineering technical services across China.

Dividend Yield: 4%

L&K Engineering (Suzhou) Ltd. reported a significant increase in earnings for Q1 2024, with sales rising to CNY 1.10 billion from CNY 322.76 million year-over-year and net income improving to CNY 116.84 million from CNY 32.62 million. Despite this growth, the company's dividend history is less consistent, having increased dividends over just seven years with some volatility in payments noted during this period. Currently trading below its estimated fair value by 43.4%, it offers a dividend yield of 3.97%, which ranks well within the top quartile of Chinese dividend payers but comes with caution due to its unstable payout history and short track record of less than ten years in dividend distribution.

• Unlock comprehensive insights into our analysis of L&K Engineering (Suzhou)Ltd stock in this dividend report.
• The analysis detailed in our L&K Engineering (Suzhou)Ltd valuation report hints at an deflated share price compared to its estimated value.

Make It Happen

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Ready For A Different Approach?

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• 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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