Changchun FAWAY Automobile ComponentsLtd And 2 More Chinese Dividend Stocks To Consider

As global markets navigate through varied economic signals, China's recent unexpected rate cuts reflect a proactive approach to stimulate its slowing economy. In this context, dividend stocks such as Changchun FAWAY Automobile Components Ltd offer investors potential resilience and steady income streams amidst broader market uncertainties.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Midea Group (SZSE:000333)	4.77%	★★★★★★
Changhong Meiling (SZSE:000521)	3.86%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.76%	★★★★★★
Ping An Bank (SZSE:000001)	7.11%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.85%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	6.04%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.63%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.90%	★★★★★★
Chacha Food Company (SZSE:002557)	3.92%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.66%	★★★★★★

Click here to see the full list of 270 stocks from our Top Chinese Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Changchun FAWAY Automobile ComponentsLtd (SHSE:600742)

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

Overview: Changchun FAWAY Automobile Components Co., Ltd operates in China, focusing on the research, design, development, manufacture, and sale of auto parts with a market capitalization of approximately CN¥5.86 billion.

Operations: Changchun FAWAY Automobile Components Co., Ltd generates revenue primarily through its manufacturing segment, which amounted to CN¥21.12 billion.

Dividend Yield: 3.2%

Changchun FAWAY Automobile Components Ltd. has demonstrated a capacity to grow its dividends over the past decade, with a current dividend yield of 3.17%, ranking in the top 25% of Chinese dividend payers. The dividends are supported by both earnings and cash flows, with payout ratios at 34% and 19.1%, respectively. Despite this, the company's dividend history has shown volatility and unreliability over the same period, indicating potential concerns about future stability. Additionally, shares are trading at a significant discount, suggesting undervaluation or market skepticism regarding its prospects.

• Delve into the full analysis dividend report here for a deeper understanding of Changchun FAWAY Automobile ComponentsLtd.
• Our valuation report unveils the possibility Changchun FAWAY Automobile ComponentsLtd's shares may be trading at a discount.

Bank of Hangzhou (SHSE:600926)

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

Overview: Bank of Hangzhou Co., Ltd. offers a range of banking products and services to individuals, corporations, and small to micro businesses in China, with a market capitalization of approximately CN¥81.13 billion.

Operations: Bank of Hangzhou Co., Ltd. generates its revenue by providing diverse banking products and services tailored to individuals, corporate entities, and small to micro-sized enterprises across China.

Dividend Yield: 3.8%

Bank of Hangzhou offers a dividend yield of 3.8%, placing it in the top 25% of Chinese dividend payers. The dividends are well-covered by earnings with a low payout ratio of 21.1%, and this coverage is expected to remain solid over the next three years at 23.4%. Despite its appealing valuation, trading at 45.4% below estimated fair value, its shorter dividend history under ten years and recent significant ownership change could introduce uncertainty regarding future dividend stability and growth prospects.

• Get an in-depth perspective on Bank of Hangzhou's performance by reading our dividend report here.
• Upon reviewing our latest valuation report, Bank of Hangzhou's share price might be too pessimistic.

Zhejiang Publishing & Media (SHSE:601921)

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

Overview: Zhejiang Publishing & Media Co., Ltd. operates in China, focusing on publishing, distribution, and printing with a market capitalization of CN¥17.47 billion.

Operations: Zhejiang Publishing & Media Co., Ltd. generates its revenue primarily through publishing, distribution, and printing activities across China.

Dividend Yield: 5%

Zhejiang Publishing & Media, with a dividend yield of 4.96%, ranks in the top quartile of Chinese dividend stocks. The company's dividends are adequately supported by both earnings and cash flows, with payout ratios of 58.8% and 74.8% respectively. Despite its relatively short dividend history of less than ten years, payments have shown growth and stability. However, investors should note the forecasted average annual earnings decline of 7.1% over the next three years which could impact future payouts.

• Navigate through the intricacies of Zhejiang Publishing & Media with our comprehensive dividend report here.
• Our comprehensive valuation report raises the possibility that Zhejiang Publishing & Media is priced lower than what may be justified by its financials.

Next Steps

• Gain an insight into the universe of 270 Top Chinese Dividend Stocks by clicking here.
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Seeking Other Investments?

• 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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