Amid a challenging environment for Chinese equities, where optimism about Beijing’s stimulus measures has waned and indices like the Shanghai Composite and Hang Seng have seen notable declines, investors are increasingly looking towards dividend stocks as a potential source of steady income. In such times, stocks that offer reliable dividends can be appealing for their ability to provide consistent returns despite market volatility.
Top 10 Dividend Stocks In China
Name | Dividend Yield | Dividend Rating |
Midea Group (SZSE:000333) | 4.11% | ★★★★★★ |
Kweichow Moutai (SHSE:600519) | 3.34% | ★★★★★★ |
China South Publishing & Media Group (SHSE:601098) | 4.20% | ★★★★★★ |
Wuliangye YibinLtd (SZSE:000858) | 3.39% | ★★★★★★ |
Changhong Meiling (SZSE:000521) | 3.29% | ★★★★★★ |
Inner Mongolia Yili Industrial Group (SHSE:600887) | 4.70% | ★★★★★★ |
HUAYU Automotive Systems (SHSE:600741) | 4.66% | ★★★★★★ |
Chacha Food Company (SZSE:002557) | 3.41% | ★★★★★★ |
Huangshan NovelLtd (SZSE:002014) | 5.74% | ★★★★★★ |
Zhejiang Jiaxin SilkLtd (SZSE:002404) | 5.18% | ★★★★★★ |
Click here to see the full list of 211 stocks from our Top Chinese Dividend Stocks screener.
We’ll examine a selection from our screener results.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Chengdu Gas Group Corporation Ltd. operates in the urban gas supply business in China and has a market capitalization of CNÂ¥8.57 billion.
Operations: Chengdu Gas Group Corporation Ltd.’s revenue is primarily derived from its urban gas supply operations in China.
Dividend Yield: 3.1%
Chengdu Gas Group has been paying dividends for four years, with stable and growing payments backed by a reasonable payout ratio of 58% and a cash payout ratio of 31.9%. Despite its short dividend history, the company’s yield is in the top 25% of the Chinese market. However, recent earnings showed a decline in net income to Â¥273.96 million from Â¥338.59 million, which may impact future dividend sustainability.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Changhong Huayi Compressor Co., Ltd. develops, manufactures, and sells various compressors both in China and internationally, with a market cap of CNÂ¥4.80 billion.
Operations: Changhong Huayi Compressor Co., Ltd. generates its revenue primarily through the development, manufacturing, and sale of a variety of compressors across domestic and international markets.
Dividend Yield: 3.6%
Changhong Huayi Compressor’s dividend yield of 3.62% places it in the top 25% of Chinese dividend payers, supported by a payout ratio of 41% and a cash payout ratio of 51.1%. Despite a volatile and unreliable dividend history over the past decade, recent earnings growth to Â¥226.83 million from Â¥164.78 million suggests improved coverage for dividends. The company’s price-to-earnings ratio of 11.3x indicates good value compared to the broader market average.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Guangdong Provincial Expressway Development Co., Ltd. operates expressways and bridges in China with a market cap of CNÂ¥21.32 billion.
Operations: The company’s revenue is primarily derived from Highway Transportations, amounting to CNÂ¥4.70 billion.
Dividend Yield: 5%
Guangdong Provincial Expressway Development’s dividend yield of 4.99% ranks it in the top 25% of Chinese dividend payers, with a payout ratio of 71.1% and cash payout ratio of 75.7%, indicating dividends are covered by earnings and cash flows. However, despite recent earnings growth to CNY 855.47 million, the company has a history of unstable and unreliable dividends over the past decade, impacting its appeal for consistent income investors.
Key Takeaways
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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.
Companies discussed in this article include SHSE:603053 SZSE:000404 and SZSE:000429.
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