FESCO Group And 2 Other Premier Chinese Dividend Stocks

The Chinese market has recently experienced a decline, with the Shanghai Composite Index dropping 2.69% and the blue-chip CSI 300 losing 2.71%, as investors grappled with weak corporate earnings and economic data. Amidst this backdrop, dividend stocks remain a compelling option for investors seeking stable returns in uncertain times. A good dividend stock typically offers consistent payouts and demonstrates resilience during economic fluctuations, making it an attractive choice in today's volatile market environment.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Midea Group (SZSE:000333)	4.87%	★★★★★★
Ping An Bank (SZSE:000001)	7.45%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.12%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	4.03%	★★★★★★
Kweichow Moutai (SHSE:600519)	3.62%	★★★★★★
Changhong Meiling (SZSE:000521)	3.39%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.78%	★★★★★★
Chacha Food Company (SZSE:002557)	3.89%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	6.63%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.80%	★★★★★★

Click here to see the full list of 272 stocks from our Top Chinese Dividend Stocks screener.

Let's dive into some prime choices out of 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¥8.11 billion.

Operations: FESCO Group Co., Ltd. generates its revenue primarily from human resources services in China, totaling CN¥8.11 billion.

Dividend Yield: 3.4%

FESCO Group's dividend yield of 3.38% ranks in the top 25% of CN market payers, but the dividend is not covered by free cash flows. Despite a reasonable payout ratio of 56.3%, earnings growth forecast at 25.87% per year, and recent profitability with half-year net income rising to CNY 433.87 million from CNY 210.91 million, dividends have been volatile and unreliable over the past decade, raising concerns about sustainability for long-term investors.

• Get an in-depth perspective on FESCO Group's performance by reading our dividend report here.
• Our valuation report unveils the possibility FESCO Group's shares may be trading at a discount.

Xiamen Solex High-tech Industries (SHSE:603992)

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

Overview: Xiamen Solex High-tech Industries Co., Ltd. (SHSE:603992) operates in the high-tech sector and has a market cap of approximately CN¥7.18 billion.

Operations: Xiamen Solex High-Tech Industries Co., Ltd. (SHSE:603992) generates revenue from various high-tech segments, with total revenue amounting to CN¥7.18 billion.

Dividend Yield: 3%

Xiamen Solex High-tech Industries recently announced a cash dividend of CNY 0.27 per share, with earnings for the first half of 2024 showing significant growth in net income to CNY 221.24 million from CNY 120.44 million a year ago. Despite this positive performance and a reasonable payout ratio (56.9%), the company's dividend history has been volatile over its short four-year span, raising concerns about long-term reliability for dividend investors.

• Take a closer look at Xiamen Solex High-tech Industries' potential here in our dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Xiamen Solex High-tech Industries shares in the market.

Chacha Food Company (SZSE:002557)

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

Overview: Chacha Food Company, Limited (SZSE:002557) produces and sells fresh nuts in China and has a market cap of CN¥12.55 billion.

Operations: Chacha Food Company, Limited generates revenue primarily from its Leisure Food segment, which amounts to CN¥7.02 billion.

Dividend Yield: 3.9%

Chacha Food Company offers a stable and attractive dividend yield of 3.98%, covered by earnings (58.1% payout ratio) and cash flows (68.9% cash payout ratio). The company has consistently increased its dividends over the past decade without volatility. Recent half-year earnings showed growth, with net income rising to CNY 336.81 million from CNY 267.48 million a year ago, supporting its robust dividend policy further bolstered by recent share buybacks totaling approximately CNY 100 million.

• Dive into the specifics of Chacha Food Company here with our thorough dividend report.
• Our expertly prepared valuation report Chacha Food Company implies its share price may be lower than expected.

Turning Ideas Into Actions

• Gain an insight into the universe of 272 Top Chinese Dividend Stocks by clicking 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.
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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.

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