Chinese dividend stocks offer stability and income amid economic uncertainties in June 2024
From Yahoo Finance: 2024-06-02 18:06:00
In June 2024, China’s economy faces challenges with manufacturing growth slowing, but policy efforts are in place to stabilize the property sector and boost domestic demand. Amid this backdrop, dividend stocks offer stability and income, making them attractive to investors uncertain about the economic outlook.
The top 10 dividend stocks in China include Shandong Wit Dyne HealthLtd, Midea Group, Wuliangye YibinLtd, and others, with dividend yields ranging from 3.07% to 6.47%. These companies are attractive options for investors seeking regular income streams and potential growth amid China’s economic uncertainties.
One notable pick is Sichuan Road & Bridge Group Co., Ltd, a company with a market capitalization of around CN¥68.50 billion. Despite a decline in revenue and net income, the company maintains a dividend yield of 6.6%, supported by a reasonable payout ratio. However, sustainability concerns linger due to inconsistent dividends over the past decade.
Another prominent choice is Anhui Hengyuan Coal Industry and Electricity Power Co., Ltd, specializing in coal mining with a market cap of about CN¥15.37 billion. This company reported a decrease in sales and net income but offers a dividend yield of 6.6%, supported by earnings. However, dividend volatility raises questions about future sustainability.
Additionally, Huaibei Mining Holdings Co., Ltd focuses on coal-related activities and boasts a dividend yield of 5.1%. While the company has a short dividend history, its payouts are well-covered by earnings and cash flows. However, recent financial reports show a downturn, signaling potential challenges ahead for sustaining profitability and dividends.
Read more at Yahoo Finance: Exploring Three Chinese Dividend Stocks In June 2024