Top Three Dividend Stocks On The Chinese Exchange In July 2024

Amidst a backdrop of fluctuating global markets and heightened trade tensions between the U.S. and China, the Chinese stock market has shown resilience, particularly in dividend-paying stocks. As investors seek stability and returns in these uncertain times, understanding the characteristics of strong dividend stocks becomes increasingly important.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Anhui Anke Biotechnology (Group) (SZSE:300009)	3.09%	★★★★★★
Midea Group (SZSE:000333)	4.99%	★★★★★★
Changhong Meiling (SZSE:000521)	4.37%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.70%	★★★★★★
Ping An Bank (SZSE:000001)	7.10%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.79%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.70%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.90%	★★★★★★
Chacha Food Company (SZSE:002557)	3.88%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.83%	★★★★★★

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

Here we highlight a subset of our preferred stocks from the screener.

Jiangxi Hongcheng EnvironmentLtd (SHSE:600461)

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

Overview: Jiangxi Hongcheng Environment Co., Ltd. specializes in the production and supply of tap water in China, with a market capitalization of approximately CN¥14.22 billion.

Operations: Jiangxi Hongcheng Environment Co., Ltd. primarily generates its revenue from the production and supply of tap water across various regions in China.

Dividend Yield: 3.8%

Jiangxi Hongcheng EnvironmentLtd, with a dividend yield of 3.81%, ranks in the top 25% of dividend payers in China. Despite this, its dividends are not well supported by free cash flows or earnings, evidenced by a high cash payout ratio (52.93 times) and an earnings coverage issue with a payout ratio at 48.3%. The company's financial position is burdened by significant debt levels and has experienced shareholder dilution over the past year. However, it trades at a favorable P/E ratio of 12.8x compared to the broader Chinese market at 27.4x and has seen an earnings growth of 11.7% over the past year, with forecasts predicting further growth of approximately 8.95% annually.

• Delve into the full analysis dividend report here for a deeper understanding of Jiangxi Hongcheng EnvironmentLtd.
• Insights from our recent valuation report point to the potential undervaluation of Jiangxi Hongcheng EnvironmentLtd shares in the market.

TangShan Port GroupLtd (SHSE:601000)

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

Overview: TangShan Port Group Co., Ltd operates in the transportation and warehousing sector in China, with a market capitalization of approximately CN¥29.93 billion.

Operations: TangShan Port Group Co., Ltd generates its revenue primarily from transportation and warehousing services within China.

Dividend Yield: 4%

TangShan Port Group Co., Ltd. has shown a mixed performance in its dividend metrics. While the dividend yield of 3.96% places it in the top quartile of Chinese dividend stocks, its track record for dividend stability is questionable with significant volatility noted over the past decade. The dividends are adequately covered by both earnings and cash flows, with payout ratios of 60.8% and 57.9%, respectively. Additionally, its P/E ratio at 15.3x is attractively below the market average of 27.4x, suggesting potential value relative to peers despite an unstable dividend history and modest annual earnings growth around 1.8%. Recent financials indicate a steady increase in revenue and net income as of Q1 2024.

• Click to explore a detailed breakdown of our findings in TangShan Port GroupLtd's dividend report.
• In light of our recent valuation report, it seems possible that TangShan Port GroupLtd is trading beyond its estimated value.

Jiangsu Changbao SteeltubeLtd (SZSE:002478)

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

Overview: Jiangsu Changbao Steeltube Co., Ltd is a company based in the People's Republic of China that specializes in manufacturing and selling steel tubes, both domestically and internationally, with a market capitalization of approximately CN¥4.49 billion.

Operations: Jiangsu Changbao Steeltube Co., Ltd generates CN¥6.14 billion from the production and sales of seamless steel pipes.

Dividend Yield: 5.6%

Jiangsu Changbao Steeltube Co., Ltd. faces challenges with its dividend sustainability, evidenced by a lack of free cash flows and volatile dividend payments over the last decade. Despite this, the company's dividends have increased, with a current yield of 5.58%, ranking in the top 25% in the Chinese market. Financial performance has declined as Q1 2024 sales dropped to CNY 1.30 billion from CNY 1.82 billion year-over-year, with net income also falling to CNY 166 million from CNY 198.58 million. The low P/E ratio at 6x suggests valuation may be attractive relative to peers despite these concerns.

• Dive into the specifics of Jiangsu Changbao SteeltubeLtd here with our thorough dividend report.
• Our valuation report unveils the possibility Jiangsu Changbao SteeltubeLtd's shares may be trading at a discount.

Key Takeaways

• Delve into our full catalog of 272 Top Chinese Dividend Stocks here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Interested In Other Possibilities?

• 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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