From Mint: 2024-06-27 07:45:25

Investors in Chinese stocks have struggled, but those focusing on dividends from less popular companies have fared better. Over the past three years, cash returns to shareholders from listed Chinese companies totaled $275 billion, mainly through dividends. State-owned enterprises have outperformed, offering stable cash flows and lower regulatory risk.

State-owned enterprises in China, particularly those listed in Hong Kong, have seen growth. With dividend yields at 5.7%, these companies provide stable cash flows and lower regulatory risk. Analysts suggest that increasing dividend payouts could boost government revenue and encourage a stock ownership culture in China.

Chinese equities remain undervalued compared to U.S. stocks. Investors can consider focusing on dividends, as cash returns are a secure investment choice. With dividends offering tangible financial benefits, the focus on stable cash flows and returns to shareholders could be a wise move in the Chinese market.



Read more at Mint: As Chinese stocks struggle, owning boring ones has paid dividends