Chinese Dividend Stocks To Consider In October 2024

As China's central bank continues to implement stimulus measures to bolster the economy, Chinese equities have shown some resilience with indices like the Shanghai Composite and CSI 300 seeing gains. In this dynamic environment, investors may find dividend stocks appealing due to their potential for providing steady income amidst market fluctuations.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Midea Group (SZSE:000333)	3.99%	★★★★★★
Lao Feng Xiang (SHSE:600612)	3.48%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.29%	★★★★★★
Changhong Meiling (SZSE:000521)	3.35%	★★★★★★
Chacha Food Company (SZSE:002557)	3.01%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.15%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.50%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.68%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.43%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.06%	★★★★★★

Click here to see the full list of 196 stocks from our Top Chinese Dividend Stocks screener.

We'll examine a selection from our screener results.

Keda Industrial Group (SHSE:600499)

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

Overview: Keda Industrial Group Co., Ltd. manufactures and sells building material machinery both in China and internationally, with a market cap of CN¥15.52 billion.

Operations: Keda Industrial Group Co., Ltd. generates revenue from Building Materials Machinery (CN¥5.21 billion), Overseas Building Ceramics (CN¥3.73 billion), and Lithium Material (CN¥630.66 million).

Dividend Yield: 4%

Keda Industrial Group's dividend yield of 4.01% ranks in the top 25% among Chinese dividend payers but lacks coverage by free cash flows, raising sustainability concerns. Despite a low payout ratio of 48.9%, past dividends have been volatile and unreliable over the last decade. The company trades at a favorable P/E ratio of 12.1x compared to the market average, though recent profits have declined significantly, with net income dropping from CNY 1.27 billion to CNY 454 million year-over-year.

• Click here to discover the nuances of Keda Industrial Group with our detailed analytical dividend report.
• Upon reviewing our latest valuation report, Keda Industrial Group's share price might be too pessimistic.

Star Lake BioscienceZhaoqing Guangdong (SHSE:600866)

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

Overview: Star Lake Bioscience Co., Inc. Zhaoqing Guangdong manufactures and sells pharmaceutical raw materials and food and feed additives under the Star Lake and Yue Bao brand names in China and internationally, with a market cap of CN¥11.10 billion.

Operations: Star Lake Bioscience Co., Inc. Zhaoqing Guangdong generates revenue through the production and distribution of pharmaceutical raw materials as well as food and feed additives, catering to both domestic and international markets.

Dividend Yield: 5.7%

Star Lake Bioscience's dividend yield of 5.69% is among the top 25% in China, with dividends well-covered by earnings (66.2% payout ratio) and cash flows (39.6%). Despite a high debt level, the company shows strong profit growth, with net income rising to CNY 506.17 million for H1 2024 from CNY 230.17 million a year prior. However, it's too early to assess dividend stability or reliability as payments have just commenced.

• Navigate through the intricacies of Star Lake BioscienceZhaoqing Guangdong with our comprehensive dividend report here.
• Our expertly prepared valuation report Star Lake BioscienceZhaoqing Guangdong implies its share price may be lower than expected.

Chacha Food Company (SZSE:002557)

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

Overview: Chacha Food Company, Limited produces and sells fresh nuts in China with a market cap of CN¥16.56 billion.

Operations: Chacha Food Company, Limited's revenue segments are not specified in the provided text.

Dividend Yield: 3%

Chacha Food Company offers a dividend yield of 3.01%, placing it in the top 25% of Chinese dividend payers. Dividends are well-supported by earnings, with a payout ratio of 55.2%, and cash flows, with a cash payout ratio of 74.7%. Recent earnings growth reflects strong financial performance, as net income increased to CNY 626.21 million for the first nine months of 2024 from CNY 505.87 million last year, supporting its stable and growing dividends over the past decade.

• Click to explore a detailed breakdown of our findings in Chacha Food Company's dividend report.
• The valuation report we've compiled suggests that Chacha Food Company's current price could be quite moderate.

Summing It All Up

• Reveal the 196 hidden gems among our Top Chinese Dividend Stocks screener with a single click here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Want To Explore Some Alternatives?

• 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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