Top China Dividend Stocks To Consider From Shanghai

As optimism about Beijing's stimulus measures wanes, Chinese equities have experienced a downturn, with the Shanghai Composite Index and CSI 300 seeing notable declines. Despite this challenging environment, dividend stocks remain an attractive option for investors seeking stable income streams amid market volatility. A strong dividend stock typically exhibits consistent earnings, a robust payout ratio, and resilience in fluctuating economic conditions.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
China South Publishing & Media Group (SHSE:601098)	4.13%	★★★★★★
Midea Group (SZSE:000333)	3.80%	★★★★★★
Changhong Meiling (SZSE:000521)	3.19%	★★★★★★
Kweichow Moutai (SHSE:600519)	3.12%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.12%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.39%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.37%	★★★★★★
Chacha Food Company (SZSE:002557)	3.30%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.64%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.03%	★★★★★★

Click here to see the full list of 199 stocks from our Top Chinese Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Bank of Jiangsu (SHSE:600919)

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

Overview: Bank of Jiangsu Co., Ltd. offers a range of banking products and services in China and has a market cap of CN¥162.04 billion.

Operations: Bank of Jiangsu Co., Ltd.'s revenue is primarily derived from its Corporate Finance Business at CN¥33.25 billion, Personal Finance Business at CN¥15.78 billion, and Treasury Operations at CN¥11.11 billion.

Dividend Yield: 5.3%

Bank of Jiangsu offers a compelling dividend profile with a yield of 5.32%, placing it in the top 25% of Chinese dividend payers. Despite only paying dividends for seven years, its payments have been stable and growing, supported by a low payout ratio of 28.9%. Recent earnings growth enhances its ability to sustain dividends, although past shareholder dilution and an unstable track record warrant caution. The stock trades at significant value compared to peers.

• Dive into the specifics of Bank of Jiangsu here with our thorough dividend report.
• Our valuation report unveils the possibility Bank of Jiangsu'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, corporate clients, and small and micro businesses in China, with a market capitalization of CN¥86.46 billion.

Operations: Bank of Hangzhou Co., Ltd. generates revenue through its key segments, including Retail Business (CN¥3.83 billion), Company Business (CN¥13.14 billion), Treasury Operations (CN¥9.33 billion), and Small Business Sales (CN¥2.63 billion).

Dividend Yield: 3.6%

Bank of Hangzhou's dividend yield of 3.57% ranks in the top 25% among Chinese dividend payers, supported by a low payout ratio of 20.1%, indicating strong earnings coverage. While dividends have been stable over seven years, they lack a long track record. Recent earnings growth, with net income rising to ¥9.99 billion for H1 2024 from ¥8.33 billion a year ago, bolsters its capacity to maintain dividends despite an unstable history.

• Click here to discover the nuances of Bank of Hangzhou with our detailed analytical dividend report.
• The valuation report we've compiled suggests that Bank of Hangzhou's current price could be quite moderate.

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¥13.78 billion.

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

Dividend Yield: 3%

Sichuan Teway Food Group Ltd's dividend yield of 3.03% places it in the top quartile of Chinese dividend stocks, with a payout ratio at 84.7%, indicating earnings cover dividends adequately. However, its five-year history shows volatility in payments, raising concerns about reliability. Recent financials reveal improved performance with net income rising to CNY 246.83 million for H1 2024 from CNY 207.78 million a year prior, supporting its ability to sustain payouts amid an unstable track record.

• Unlock comprehensive insights into our analysis of Sichuan Teway Food GroupLtd stock in this dividend report.
• Our valuation report unveils the possibility Sichuan Teway Food GroupLtd's shares may be trading at a premium.

Taking Advantage

• Reveal the 199 hidden gems among our Top Chinese Dividend Stocks screener with a single click here.
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Ready To Venture Into Other Investment Styles?

• 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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