Top 3 Chinese Dividend Stocks To Watch In September 2024

China's recent announcement of robust stimulus measures has significantly boosted market sentiment, leading to a notable surge in the Shanghai Composite Index and other major indices. As investors look to capitalize on these positive developments, dividend stocks in China present an attractive opportunity for those seeking steady income and potential growth. In light of the current economic climate, a good dividend stock is characterized by its ability to maintain consistent payouts and benefit from favorable market conditions spurred by government initiatives.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Midea Group (SZSE:000333)	4.11%	★★★★★★
Lao Feng Xiang (SHSE:600612)	3.36%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.18%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.16%	★★★★★★
Kweichow Moutai (SHSE:600519)	3.07%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.35%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.47%	★★★★★★
Chacha Food Company (SZSE:002557)	3.18%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.88%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.25%	★★★★★★

Click here to see the full list of 209 stocks from our Top Chinese Dividend Stocks screener.

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

Sichuan Teway Food GroupLtd (SHSE:603317)

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

Overview: Sichuan Teway Food Group Co., Ltd. is involved in the research, development, production, and sale of compound seasonings in China with a market cap of CN¥11.60 billion.

Operations: Sichuan Teway Food Group Co., Ltd. generates its revenue primarily from the research, development, production, and sale of compound seasonings in China.

Dividend Yield: 3.6%

Sichuan Teway Food Group Ltd. reported half-year sales of CNY 1.47 billion and net income of CNY 246.83 million, reflecting year-on-year growth. Despite a reasonable cash payout ratio (68.3%) and earnings coverage (84.7%), the company's dividend payments have been volatile over its five-year history, making them less reliable for consistent income seekers. The stock trades at 20.6% below estimated fair value, offering potential upside but with caution due to its unstable dividend track record.

• Navigate through the intricacies of Sichuan Teway Food GroupLtd with our comprehensive dividend report here.
• Our expertly prepared valuation report Sichuan Teway Food GroupLtd implies its share price may be lower than expected.

Dong-E-E-JiaoLtd (SZSE:000423)

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

Overview: Dong-E-E-Jiao Co., Ltd. engages in the research and development, production, and sale of Ejiao, Chinese patent medicines, health foods, and other food products with a market cap of CN¥37.98 billion.

Operations: Dong-E-E-Jiao Co., Ltd. generates CN¥5.30 billion in revenue from the operation of Ejiao and its related products.

Dividend Yield: 3.9%

Dong-E-E-Jiao Ltd. has a dividend yield of 3.88%, placing it in the top tier of CN market dividend payers, but its high payout ratio (138.6%) raises concerns about sustainability. Despite reasonable cash flow coverage (71.7%), the dividends have been volatile over the past decade, making them unreliable for consistent income seekers. Recent earnings growth and trading at 18.1% below fair value provide potential upside, yet caution is advised due to its inconsistent dividend history.

• Click here to discover the nuances of Dong-E-E-JiaoLtd with our detailed analytical dividend report.
• Our valuation report unveils the possibility Dong-E-E-JiaoLtd's shares may be trading at a discount.

Changchun High-Tech Industry (Group) (SZSE:000661)

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

Overview: Changchun High-Tech Industry (Group) Co., Ltd. researches, develops, manufactures, and sells biopharmaceuticals and traditional Chinese medicine products in China, with a market cap of CN¥40.16 billion.

Operations: Changchun High-Tech Industry (Group) Co., Ltd. generates revenue primarily from the Pharmaceutical Industry (CN¥13.72 billion), Real Estate (CN¥1.27 billion), and the Service Industry (CN¥45.99 million).

Dividend Yield: 4.5%

Changchun High-Tech Industry (Group) reported half-year sales of CNY 6.64 billion, up from CNY 6.17 billion a year ago, but net income decreased to CNY 1.72 billion from CNY 2.16 billion. Despite this, the company's dividend payments have been stable and growing over the past decade with a reasonable payout ratio of 44.4%, making them well-covered by earnings and cash flows (63.4%). The upcoming shareholder meeting on Sep 27 will address remuneration measures for directors and management.

• Unlock comprehensive insights into our analysis of Changchun High-Tech Industry (Group) stock in this dividend report.
• The valuation report we've compiled suggests that Changchun High-Tech Industry (Group)'s current price could be quite moderate.

Key Takeaways

• Navigate through the entire inventory of 209 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.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

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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