Steering Clear Of Sinomag Technology With One Better Dividend Stock Option

Dividend growth is a key indicator of a company's financial health and its ability to provide consistent returns to investors. In the realm of dividend stocks, it's crucial to identify companies that have maintained or increased their dividends over time. Unfortunately, some companies like Sinomag Technology have seen their dividends decline, making them less appealing for those seeking reliable investment income from dividends in China's market.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Lao Feng Xiang (SHSE:600612)	3.24%	★★★★★★
Midea Group (SZSE:000333)	4.69%	★★★★★★
Changhong Meiling (SZSE:000521)	4.06%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.62%	★★★★★★
Ping An Bank (SZSE:000001)	7.21%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.72%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.17%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.66%	★★★★★★
Chacha Food Company (SZSE:002557)	3.62%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.69%	★★★★★★

Click here to see the full list of 247 stocks from our Top Dividend Stocks screener.

Let's explore one of the standout options from the results in the screener and examine one not meeting the grade.

Top Pick

Jiangsu Phoenix Publishing & Media (SHSE:601928)

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

Overview: Jiangsu Phoenix Publishing & Media Corporation Limited specializes in the editing, publishing, and distribution of books, newspapers, electronic publications, and audio-visual products across China, with a market capitalization of CN¥29.85 billion.

Operations: The company generates revenue primarily through the sale of books, newspapers, electronic and audio-visual publications.

Dividend Yield: 4.3%

Jiangsu Phoenix Publishing & Media maintains a stable dividend yield at 4.26%, higher than the market average of 2.57%. Its dividends are well-supported with a payout ratio of 45% and a cash payout ratio of 70.5%, indicating sustainability from both earnings and cash flow perspectives. Despite this, the company's dividend track record has been unreliable over the past decade, showing some volatility. Recently, Q1 earnings showed a decrease to CNY 356.11 million from CNY 482.96 million year-over-year, potentially signaling challenges ahead.

• Click here and access our complete dividend analysis report to understand the dynamics of Jiangsu Phoenix Publishing & Media.
• In light of our recent valuation report, it seems possible that Jiangsu Phoenix Publishing & Media is trading behind its estimated value.

One To Reconsider

Sinomag Technology (SZSE:300835)

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

Overview: Sinomag Technology Co., Ltd. is a global company specializing in the research, development, production, and sale of permanent ferrite magnets and soft magnetic cores and components, with a market capitalization of approximately CN¥3.03 billion.

Operations: The company generates revenue primarily through the development and sale of permanent ferrite magnets and soft magnetic cores and components globally.

Dividend Yield: 0.8%

Sinomag Technology Co., Ltd. faces challenges as a dividend stock primarily due to its declining dividend payments over the past four years, despite having a reasonable payout ratio of 26.8%. The company's recent dividend announcement of CNY 2.00 per 10 shares does not align with its unstable dividend history and lack of free cash flows, casting doubt on the sustainability and reliability of future dividends. Additionally, its low yield of 0.78% falls short compared to the top quartile in China's market at 2.57%.

• Click here to discover the nuances of Sinomag Technology with our detailed analytical dividend report.

Where To Now?

• Take a closer look at our Top Dividend Stocks list of 247 companies by clicking here.
• Got skin in the game with some of these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Looking For Alternative Opportunities?

• 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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