Exploring Top Dividend Stocks In China May 2024

As of May 2024, the Chinese stock market has faced challenges, with major indices like the Shanghai Composite and the CSI 300 experiencing declines amidst ongoing concerns about high U.S. interest rates dampening investor sentiment. Despite these headwinds, certain sectors such as dividend-paying stocks continue to attract attention for their potential in providing steady income streams in uncertain times.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Shandong Wit Dyne HealthLtd (SZSE:000915)	6.09%	★★★★★★
Midea Group (SZSE:000333)	4.56%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.13%	★★★★★★
Changhong Meiling (SZSE:000521)	3.04%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.15%	★★★★★★
Ping An Bank (SZSE:000001)	6.39%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.49%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.23%	★★★★★★
Chacha Food Company (SZSE:002557)	3.07%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.00%	★★★★★★

Click here to see the full list of 191 stocks from our Top Dividend Stocks screener.

Let's dive into some prime choices out of from the screener.

Shandong Nanshan AluminiumLtd (SHSE:600219)

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

Overview: Shandong Nanshan Aluminium Co., Ltd. engages in the research, development, manufacturing, importation, sale, and exportation of aluminum profiles globally with a market capitalization of approximately CN¥46.01 billion.

Operations: Shandong Nanshan Aluminium Co., Ltd. generates revenue through the research, development, manufacturing, and global sales of aluminum profiles.

Dividend Yield: 3.1%

Shandong Nanshan Aluminium Ltd., while trading at a favorable price-to-earnings ratio of 12.1x compared to the China market average of 31.1x, has shown unstable dividend patterns over the past decade with significant fluctuations in annual payments. Despite this volatility, dividends are reasonably covered by both earnings and cash flows, with a payout ratio of 35.9% and a cash payout ratio of 52.2%. Recent financials indicate robust growth, reporting a net income increase to CNY 851 million from CNY 518.94 million year-over-year for Q1 2024.

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

Beijing Sifang AutomationLtd (SHSE:601126)

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

Overview: Beijing Sifang Automation Co., Ltd. provides systems for power transmission, transformation protection, automation, generation, and distribution in China and globally, with a market capitalization of CN¥14.65 billion.

Operations: Beijing Sifang Automation Co., Ltd. generates revenue from the sale of systems for power transmission, transformation protection, automation, generation, and distribution across both domestic and international markets.

Dividend Yield: 3.4%

Beijing Sifang Automation Co., Ltd has demonstrated a mixed track record for dividend reliability, with a history of volatile payments over the past decade. Despite this, dividends are currently supported by earnings and cash flows, with payout ratios standing at 75% and 39.8% respectively. Recent financial results show promising growth; Q1 2024 sales rose to CNY 1.54 billion from CNY 1.18 billion year-over-year, alongside an increase in net income to CNY 181.06 million from CNY 141.95 million.

• Click to explore a detailed breakdown of our findings in Beijing Sifang AutomationLtd's dividend report.
• The analysis detailed in our Beijing Sifang AutomationLtd valuation report hints at an deflated share price compared to its estimated value.

Jinduicheng Molybdenum (SHSE:601958)

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

Overview: Jinduicheng Molybdenum Co., Ltd. is a global producer and seller of molybdenum products, with a market capitalization of approximately CN¥39.69 billion.

Operations: Jinduicheng Molybdenum Co., Ltd. generates its revenue primarily from the production and sale of molybdenum products internationally.

Dividend Yield: 3.3%

Jinduicheng Molybdenum's dividend history shows variability, with a track record of inconsistent growth over the past decade. Despite this, its current dividend yield is competitive at 3.25%, ranking in the top quartile for China's market. The company trades at a significant discount of 38.6% below estimated fair value and maintains a sustainable payout with earnings and cash flow coverage ratios at 44.5% and 40.3%, respectively. Recent financials indicate a decline in net income to CNY 633.2 million from CNY 832.65 million year-over-year, although sales increased to CNY 2,866.99 million from CNY 2,644.16 million.

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

Key Takeaways

• Navigate through the entire inventory of 191 Top Dividend Stocks here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Curious About Other Options?

• 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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