Stock Analysis

Top Chinese Dividend Stocks To Watch In September 2024

SZSE:300121
Source: Shutterstock

As Chinese equities have retreated in recent weeks amid weak corporate earnings and mixed economic data, investors are increasingly looking for stability in the form of dividend stocks. In the current market environment, a good dividend stock is characterized by strong fundamentals and consistent payout history, offering a potential cushion against volatility.

Top 10 Dividend Stocks In China

NameDividend YieldDividend Rating
Midea Group (SZSE:000333)4.81%★★★★★★
Anhui Anke Biotechnology (Group) (SZSE:300009)3.23%★★★★★★
Changhong Meiling (SZSE:000521)3.41%★★★★★★
Ping An Bank (SZSE:000001)7.38%★★★★★★
Wuliangye YibinLtd (SZSE:000858)4.12%★★★★★★
China South Publishing & Media Group (SHSE:601098)4.11%★★★★★★
Kweichow Moutai (SHSE:600519)3.74%★★★★★★
HUAYU Automotive Systems (SHSE:600741)4.82%★★★★★★
Chacha Food Company (SZSE:002557)3.94%★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)5.83%★★★★★★

Click here to see the full list of 277 stocks from our Top Chinese Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Hisense Visual Technology (SHSE:600060)

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

Overview: Hisense Visual Technology Co., Ltd. engages in the research, development, production, and sale of display products and related industry chain products both in China and internationally, with a market cap of CN¥20.60 billion.

Operations: Hisense Visual Technology Co., Ltd. generates revenue primarily from its multimedia segment, which amounts to CN¥54.20 billion.

Dividend Yield: 5%

Hisense Visual Technology has a mixed dividend history, with payments being volatile over the past decade. However, its current dividend yield of 5.01% is among the top 25% in the Chinese market. The payout ratios are sustainable, with earnings covering 55% and cash flows covering 37.8%. Recent earnings reported CNY 834 million net income for H1 2024, down from CNY 1.04 billion last year, indicating some financial pressure despite stable revenue growth to CNY 25.46 billion.

SHSE:600060 Dividend History as at Sep 2024
SHSE:600060 Dividend History as at Sep 2024

Shanghai Foreign Service Holding Group (SHSE:600662)

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

Overview: Shanghai Foreign Service Holding Group Co., Ltd. (SHSE:600662) operates in the human resources services industry and has a market cap of approximately CN¥9.66 billion.

Operations: Shanghai Foreign Service Holding Group Co., Ltd. (SHSE:600662) generates revenue through its primary operations in the human resources services industry.

Dividend Yield: 3.1%

Shanghai Foreign Service Holding Group's dividend payments have been volatile over the past decade, with a history of significant annual drops. However, its current yield of 3.07% ranks in the top 25% of Chinese dividend payers. The company's dividends are well-covered by both earnings (48.8%) and cash flows (50.1%), indicating sustainability despite past volatility. Recent earnings for H1 2024 showed net income growth to CNY 364 million from CNY 345 million last year, reflecting positive financial momentum amidst stable revenue increases to CNY 10.54 billion.

SHSE:600662 Dividend History as at Sep 2024
SHSE:600662 Dividend History as at Sep 2024

Shandong Yanggu Huatai Chemical (SZSE:300121)

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

Overview: Shandong Yanggu Huatai Chemical Co., Ltd. operates in the chemical industry and has a market cap of CN¥2.90 billion.

Operations: Shandong Yanggu Huatai Chemical Co., Ltd. generates CN¥3.48 billion in revenue from the Rubber and Additives Industry segment.

Dividend Yield: 3.5%

Shandong Yanggu Huatai Chemical Co., Ltd. announced a cash dividend of CNY 0.50 per 10 shares for H1 2024, though its net income dropped to CNY 138.8 million from CNY 209.38 million the previous year, reflecting a lower profit margin of 6.7%. Despite a low payout ratio (43.7%) and a P/E ratio of 12.4x below the market average, dividends have been volatile and are not covered by free cash flows, raising sustainability concerns despite being in the top tier for yield at 3.47%.

SZSE:300121 Dividend History as at Sep 2024
SZSE:300121 Dividend History as at Sep 2024

Key Takeaways

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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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