Chinese Dividend Stocks To Bolster Your Portfolio

Chinese equities have shown resilience despite weaker-than-expected economic activity, with the Shanghai Composite Index gaining 0.6% and the blue-chip CSI 300 adding 0.42%. In this environment, dividend stocks can offer a stable income stream and potential for capital appreciation. When considering dividend stocks in China, it's important to look for companies with strong fundamentals and consistent payout histories.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Midea Group (SZSE:000333)	4.86%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.74%	★★★★★★
Kweichow Moutai (SHSE:600519)	3.49%	★★★★★★
Ping An Bank (SZSE:000001)	7.10%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	6.05%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.20%	★★★★★★
Changhong Meiling (SZSE:000521)	3.75%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	5.32%	★★★★★★
Chacha Food Company (SZSE:002557)	3.85%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.63%	★★★★★★

Click here to see the full list of 266 stocks from our Top Chinese Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Zhejiang Publishing & Media (SHSE:601921)

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

Overview: Zhejiang Publishing & Media Co., Ltd. engages in publishing, distribution, and printing activities in China with a market cap of CN¥19.13 billion.

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

Dividend Yield: 4.5%

Zhejiang Publishing & Media offers a compelling dividend profile with its 4.53% yield, placing it in the top 25% of dividend payers in China. The company's dividends are well-covered by earnings (58.8%) and cash flows (74.8%), despite a relatively short track record of two years. While trading at 15.8% below estimated fair value, future earnings are forecasted to decline by an average of 7.1% per year over the next three years, potentially impacting future dividends.

• Get an in-depth perspective on Zhejiang Publishing & Media's performance by reading our dividend report here.
• Our expertly prepared valuation report Zhejiang Publishing & Media implies its share price may be lower than expected.

Teyi Pharmaceutical GroupLtd (SZSE:002728)

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

Overview: Teyi Pharmaceutical Group Co., Ltd specializes in the research, development, production, and sale of Chinese patent medicines, pharmaceutical preparations, raw materials, and products in China with a market cap of CN¥4.29 billion.

Operations: Teyi Pharmaceutical Group Co., Ltd generates revenue from Chinese patent medicines, pharmaceutical preparations, and raw materials in the People's Republic of China.

Dividend Yield: 4.2%

Teyi Pharmaceutical Group's recent earnings report shows a significant decline, with half-year sales at CNY 313.75 million and net income at CNY 2.69 million, down from CNY 538.38 million and CNY 152.13 million respectively last year. Despite a stable dividend history over the past decade, its current dividend yield of 4.25% is not well-covered by earnings or free cash flow, raising concerns about sustainability amidst ongoing share buybacks totaling CNY 4.15 million recently completed in July 2024.

• Click here to discover the nuances of Teyi Pharmaceutical GroupLtd with our detailed analytical dividend report.
• In light of our recent valuation report, it seems possible that Teyi Pharmaceutical GroupLtd is trading beyond its estimated value.

HangZhou Everfine Photo-e-info (SZSE:300306)

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

Overview: HangZhou Everfine Photo-e-info Co., Ltd. offers a range of products including photoelectric, biometric, infrared, UV, EMC, and DNA diagnosis technologies in China and has a market cap of CN¥2.50 billion.

Operations: HangZhou Everfine Photo-e-info Co., Ltd. generates revenue through its diverse product offerings in photoelectric, biometric, infrared, UV, EMC, and DNA diagnosis technologies within the Chinese market.

Dividend Yield: 3.2%

HangZhou Everfine Photo-e-info, trading at 48.4% below its fair value estimate, has seen earnings grow by 8.9% over the past year. Despite a volatile share price and an unstable dividend track record with significant annual drops, its current payout ratio of 88.2% ensures dividends are covered by earnings and cash flows (56.7%). Its dividend yield of 3.23%, in the top quartile of CN market payers, offers some appeal despite historical unreliability and volatility in payments over the past decade.

• Delve into the full analysis dividend report here for a deeper understanding of HangZhou Everfine Photo-e-info.
• In light of our recent valuation report, it seems possible that HangZhou Everfine Photo-e-info is trading behind its estimated value.

Summing It All Up

• Unlock more gems! Our Top Chinese Dividend Stocks screener has unearthed 263 more companies for you to explore.Click here to unveil our expertly curated list of 266 Top Chinese Dividend Stocks.
• 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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Ready For A Different Approach?

• 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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