Chinese Dividend Stocks To Consider In September 2024

As Chinese equities saw gains in a holiday-shortened week, buoyed by the Fed's interest rate cut despite mixed economic data, investors are increasingly looking at dividend stocks as a viable option. In light of these market conditions, it's crucial to consider companies with strong fundamentals and consistent dividend payouts for potential stability and income generation.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Midea Group (SZSE:000333)	4.08%	★★★★★★
Changhong Meiling (SZSE:000521)	3.05%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.26%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.48%	★★★★★★
Kweichow Moutai (SHSE:600519)	3.27%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.70%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.60%	★★★★★★
Chacha Food Company (SZSE:002557)	3.30%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	6.02%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.36%	★★★★★★

Click here to see the full list of 228 stocks from our Top Chinese Dividend Stocks screener.

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

FESCO Group (SHSE:600861)

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

Overview: FESCO Group Co., Ltd. operates in the human resources service industry in China and has a market cap of CN¥8.94 billion.

Operations: FESCO Group Co., Ltd. generates revenue from various segments within the human resources service industry in China.

Dividend Yield: 3.1%

FESCO Group's recent earnings report showed significant growth, with sales rising to CNY 21.87 billion and net income doubling to CNY 433.87 million for the first half of 2024. Despite a strong dividend yield of 3.07%, dividends have been unreliable and not well covered by free cash flows, although the payout ratio is low at 36.3%. The stock trades at a good value compared to peers but has shown volatility in dividend payments over the past decade.

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

Luzhou LaojiaoLtd (SZSE:000568)

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

Overview: Luzhou Laojiao Co., Ltd, with a market cap of CN¥182.11 billion, provides liquor products in China.

Operations: Luzhou Laojiao Co., Ltd generates revenue primarily from its alcohol segment, amounting to CN¥32.40 billion.

Dividend Yield: 4.4%

Luzhou Laojiao Ltd. reported strong H1 2024 earnings with sales of CNY 16.64 billion and net income of CNY 8.03 billion, reflecting solid financial health. Despite a reasonable payout ratio (55.9%) and cash flow coverage (66.5%), the company's dividend history has been volatile over the past decade, impacting reliability for investors seeking stable income streams. Recent dividend increases highlight potential, but caution is advised due to past inconsistencies in payments.

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

Shenzhen Fuanna Bedding and FurnishingLtd (SZSE:002327)

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

Overview: Shenzhen Fuanna Bedding and Furnishing Co., Ltd. engages in the R&D, design, production, and sales of textile home furnishing and living products both in China and internationally, with a market cap of CN¥7.35 billion.

Operations: Shenzhen Fuanna Bedding and Furnishing Co., Ltd. generates revenue through its textile home furnishing, home furnishing, and living products segments both domestically and internationally.

Dividend Yield: 7.4%

Shenzhen Fuanna Bedding and Furnishing Ltd. has a strong dividend yield of 7.4%, placing it in the top 25% of CN market payers, with stable dividends over the past decade. However, its high payout ratios (95.9% earnings, 112.5% cash flow) raise concerns about sustainability. Recent H1 2024 results showed modest revenue growth to CNY 1.31 billion but flat net income at CNY 218 million, indicating potential challenges in maintaining current dividend levels without improved profitability or cash flow management.

• Get an in-depth perspective on Shenzhen Fuanna Bedding and FurnishingLtd's performance by reading our dividend report here.
• Our valuation report here indicates Shenzhen Fuanna Bedding and FurnishingLtd may be undervalued.

Key Takeaways

• Discover the full array of 228 Top Chinese Dividend Stocks right here.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com