Chinese Dividend Stocks To Consider In October 2024

Simply Wall St · 10/21 22:05

As China's central bank introduces more support measures to counter deflationary pressures, the Shanghai Composite Index has seen a modest rise, reflecting cautious optimism in the market. Despite economic growth slightly trailing government targets, industrial production and retail sales have shown signs of improvement, creating a backdrop where dividend stocks may offer stability and income potential for investors. In this environment, selecting stocks with strong fundamentals and consistent dividend payouts can be an effective strategy for those looking to capitalize on the evolving economic landscape.

Top 10 Dividend Stocks In China

Name Dividend Yield Dividend Rating
Midea Group (SZSE:000333) 4.05% ★★★★★★
Lao Feng Xiang (SHSE:600612) 3.50% ★★★★★★
Kweichow Moutai (SHSE:600519) 3.27% ★★★★★★
Wuliangye YibinLtd (SZSE:000858) 3.27% ★★★★★★
Changhong Meiling (SZSE:000521) 3.16% ★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887) 4.55% ★★★★★★
HUAYU Automotive Systems (SHSE:600741) 4.72% ★★★★★★
Chacha Food Company (SZSE:002557) 3.34% ★★★★★★
Huangshan NovelLtd (SZSE:002014) 5.71% ★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404) 5.22% ★★★★★★

Click here to see the full list of 202 stocks from our Top Chinese Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Bank of Shanghai (SHSE:601229)

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

Overview: Bank of Shanghai Co., Ltd. offers a range of personal and corporate banking products and services mainly in Mainland China, with a market cap of CN¥114.36 billion.

Operations: Bank of Shanghai Co., Ltd. generates revenue from Retail Financial Operations amounting to CN¥7.69 billion and Wholesale Financial Operations totaling CN¥31.62 billion.

Dividend Yield: 5.7%

Bank of Shanghai presents a compelling option for dividend investors, trading at 32% below estimated fair value. Despite its relatively short 7-year dividend history, payments have been stable and are well-covered by earnings with a current payout ratio of 29.9%. The bank's dividends are forecast to remain sustainable with a payout ratio of 31.2% in three years. Recent earnings show net income growth to CNY 12.97 billion, supporting continued dividend reliability.

SHSE:601229 Dividend History as at Oct 2024
SHSE:601229 Dividend History as at Oct 2024

Jiangsu Tianmu Lake TourismLtd (SHSE:603136)

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

Overview: Jiangsu Tianmu Lake Tourism Co., Ltd. operates a tourism resort in China and has a market cap of CN¥3.23 billion.

Operations: Jiangsu Tianmu Lake Tourism Ltd's revenue is primarily derived from its operations in the tourism sector within China.

Dividend Yield: 3.1%

Jiangsu Tianmu Lake Tourism Ltd offers a mixed dividend profile, trading at 43.5% below estimated fair value and providing a dividend yield in the top 25% of the CN market. However, its dividends have been volatile over its six-year history, with payments covered by earnings (73.4% payout ratio) and cash flow (49.4% cash payout ratio). Recent earnings showed declines in revenue to CNY 263.41 million and net income to CNY 52.56 million for H1 2024, indicating potential challenges ahead for dividend stability.

SHSE:603136 Dividend History as at Oct 2024
SHSE:603136 Dividend History as at Oct 2024

New Trend International Logis-TechLtd (SZSE:300532)

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

Overview: New Trend International Logis-Tech Ltd (SZSE:300532) operates in the logistics technology sector, focusing on providing innovative solutions and services, with a market cap of CN¥5.90 billion.

Operations: New Trend International Logis-Tech Ltd (SZSE:300532) generates its revenue from various segments in the logistics technology sector.

Dividend Yield: 5.3%

New Trend International Logis-Tech Ltd. offers a dividend yield in the top 25% of the CN market, with recent increases to CNY 5 per 10 shares. Despite a volatile dividend history over its seven-year payment period, dividends are covered by earnings (59.7% payout ratio) and cash flows (81.4% cash payout ratio). The company's earnings grew by 13.6%, supporting its ability to maintain payouts amidst share price volatility and recent management changes impacting control dynamics.

SZSE:300532 Dividend History as at Oct 2024
SZSE:300532 Dividend History as at Oct 2024

Key Takeaways

  • Reveal the 202 hidden gems among our Top Chinese Dividend Stocks screener with a single click here.
  • Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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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.