3 Top Chinese Dividend Stocks Yielding 4.6%

Amidst a backdrop of robust stimulus measures announced by the Chinese government, which have buoyed market sentiment and driven significant gains in key indices, investors are increasingly eyeing dividend stocks as a reliable source of income. In this environment, selecting strong dividend-paying stocks can offer stability and yield potential, making them an attractive option for those looking to benefit from China's economic resurgence.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Midea Group (SZSE:000333)	3.94%	★★★★★★
Lao Feng Xiang (SHSE:600612)	3.10%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	3.95%	★★★★★★
Bank of Beijing (SHSE:601169)	5.48%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.13%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.18%	★★★★★★
Changchun High-Tech Industry (Group) (SZSE:000661)	4.09%	★★★★★★
Zhejiang HangminLtd (SHSE:600987)	3.80%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.49%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	4.91%	★★★★★★

Click here to see the full list of 177 stocks from our Top Chinese Dividend Stocks screener.

We'll examine a selection from our screener results.

DaShenLin Pharmaceutical Group (SHSE:603233)

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

Overview: DaShenLin Pharmaceutical Group Co., Ltd. manufactures, wholesales, and retails pharmaceutical products in China, with a market cap of CN¥18.55 billion.

Operations: DaShenLin Pharmaceutical Group's revenue segments include Retail at CN¥21.33 billion and Franchise and Distribution at CN¥3.92 billion.

Dividend Yield: 3.8%

DaShenLin Pharmaceutical Group's dividend yield of 3.81% is among the top 25% in China, but its payments have been volatile and unreliable over the past six years. The company’s dividends are well-covered by earnings (77.5%) and cash flows (43.2%). Recent buybacks totaling CNY 100.72 million might signal confidence in financial stability despite a drop in net income from CNY 917.43 million to CNY 657.59 million year-over-year for H1 2024.

• Delve into the full analysis dividend report here for a deeper understanding of DaShenLin Pharmaceutical Group.
• The analysis detailed in our DaShenLin Pharmaceutical Group valuation report hints at an deflated share price compared to its estimated value.

Sinoma Science & TechnologyLtd (SZSE:002080)

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

Overview: Sinoma Science & Technology Co., Ltd. engages in the research, design, manufacture, and sale of specialty fiber composite materials in China and has a market cap of CN¥21.43 billion.

Operations: Sinoma Science & Technology Co., Ltd. generates revenue from the research, design, manufacturing, and sale of specialty fiber composite materials in China.

Dividend Yield: 4.4%

Sinoma Science & Technology Ltd.'s dividend yield of 4.39% places it in the top 25% of Chinese dividend payers, but its payments have been volatile over the past decade. The company's recent earnings report showed a significant decline in net income to CNY 464.68 million for H1 2024, down from CNY 1.39 billion a year ago, impacting its ability to cover dividends with free cash flow. Recent board changes may influence future strategies and financial stability.

• Navigate through the intricacies of Sinoma Science & TechnologyLtd with our comprehensive dividend report here.
• The valuation report we've compiled suggests that Sinoma Science & TechnologyLtd's current price could be quite moderate.

Jiangsu Yanghe Distillery (SZSE:002304)

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

Overview: Jiangsu Yanghe Distillery Co., Ltd. produces and sells liquors, wines, and spirits with a market cap of CN¥149.42 billion.

Operations: Revenue from Jiangsu Yanghe Distillery Co., Ltd.'s alcohol industry segment amounts to CN¥33.52 billion.

Dividend Yield: 4.7%

Jiangsu Yanghe Distillery's dividend yield of 4.7% is among the top 25% in China, with stable and reliable payments over the past decade. However, despite a reasonable payout ratio of 69.5%, dividends are not well covered by cash flows due to a high cash payout ratio of 108.2%. Recent earnings for H1 2024 showed net income at CNY 7.95 billion, slightly up from last year, indicating steady financial performance but highlighting potential sustainability concerns for future dividends.

• Take a closer look at Jiangsu Yanghe Distillery's potential here in our dividend report.
• According our valuation report, there's an indication that Jiangsu Yanghe Distillery's share price might be on the cheaper side.

Key Takeaways

• Explore the 177 names from our Top Chinese Dividend Stocks screener here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Contemplating Other Strategies?

• 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