Three Solid Dividend Stocks In China With Yields Starting At 3%

Amidst a backdrop of mixed economic signals from China, where recent manufacturing data has shown contraction yet some sectors like services are seeing growth, investors may find stability and potential income in dividend-paying stocks. In times of market volatility and economic uncertainty, such stocks can offer a semblable blend of yield and security.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Anhui Anke Biotechnology (Group) (SZSE:300009)	3.01%	★★★★★★
Midea Group (SZSE:000333)	4.67%	★★★★★★
Changhong Meiling (SZSE:000521)	4.21%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.71%	★★★★★★
Ping An Bank (SZSE:000001)	7.24%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.76%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.77%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.31%	★★★★★★
Chacha Food Company (SZSE:002557)	3.69%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.81%	★★★★★★

Click here to see the full list of 259 stocks from our Top Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Yangzhou Jinquan Travelling Goods (SHSE:603307)

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

Overview: Yangzhou Jinquan Travelling Goods Co., Ltd. is a company that specializes in the production and sale of travel-related products, with a market capitalization of CN¥2.20 billion.

Operations: Yangzhou Jinquan Travelling Goods Co., Ltd. generates revenue primarily from its recreational products segment, which brought in CN¥794.21 million.

Dividend Yield: 3%

Yangzhou Jinquan Travelling Goods Co., Ltd. maintains a low payout ratio of 30.4%, ensuring dividends are well-covered by earnings and cash flows (cash payout ratio 26.6%). Despite a recent drop in annual revenue from CNY 1.13 billion to CNY 845.6 million and net income decline from CNY 239.44 million to CNT 227.82 million, the company's dividend yield of 3.04% remains competitive in the Chinese market, ranking in the top quartile of dividend payers at 2.57%. However, with dividends only recently initiated, their growth and stability are yet to be established.

• Click here to discover the nuances of Yangzhou Jinquan Travelling Goods with our detailed analytical dividend report.
• Our valuation report unveils the possibility Yangzhou Jinquan Travelling Goods' shares may be trading at a discount.

Henan Shenhuo Coal Industry and Electricity Power (SZSE:000933)

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

Overview: Henan Shenhuo Coal Industry and Electricity Power Co., Ltd. is a China-based company primarily engaged in coal mining and electricity production, with a market capitalization of approximately CN¥47.65 billion.

Operations: Henan Shenhuo Coal Industry and Electricity Power Co., Ltd. generates its revenue primarily through coal mining and electricity production activities.

Dividend Yield: 3.8%

Henan Shenhuo Coal Industry and Electricity Power has exhibited a fluctuating dividend history, with recent decreases announced on May 9, 2024. Despite this instability, the dividends are well-supported by both earnings and cash flows, with payout ratios of 32.7% and 19.7% respectively. Trading at 61.8% below estimated fair value suggests potential undervaluation. However, recent financials indicate a downturn in revenue and net income in Q1 2024 compared to the previous year, which could impact future dividend reliability.

• Click to explore a detailed breakdown of our findings in Henan Shenhuo Coal Industry and Electricity Power's dividend report.
• The analysis detailed in our Henan Shenhuo Coal Industry and Electricity Power valuation report hints at an deflated share price compared to its estimated value.

Zhejiang Weixing Industrial Development (SZSE:002003)

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

Overview: Zhejiang Weixing Industrial Development Co., Ltd. is a company that operates in the manufacturing sector with a market capitalization of approximately CN¥14.67 billion.

Operations: Zhejiang Weixing Industrial Development generates revenue primarily through the production and sales of apparel accessories, totaling CN¥4.01 billion.

Dividend Yield: 3.6%

Zhejiang Weixing Industrial Development has recently increased its dividend to CNY 4.50 per 10 shares for 2023, reflecting a stable payout pattern over the last decade. Despite this, the dividend sustainability is questionable with a high cash payout ratio of 402.7% and earnings coverage just under strain at an 82.7% payout ratio. The firm's financial performance shows improvement with Q1 revenues up to CNY 800.53 million from CNY 697.16 million year-over-year, and net income rising to CNY 77.92 million from CNY 53.65 million, supporting a positive outlook on its earning growth forecast of approximately 14%. However, shareholder dilution within the past year could pose concerns about future value retention.

• Dive into the specifics of Zhejiang Weixing Industrial Development here with our thorough dividend report.
• According our valuation report, there's an indication that Zhejiang Weixing Industrial Development's share price might be on the expensive side.

Taking Advantage

• Click here to access our complete index of 259 Top Dividend Stocks.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Ready To Venture Into Other Investment Styles?

• 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