Saturday, December 26, 2009
Top Yielding China Stocks
Why do many investors like to invest in Chinese stocks? Maybe because China, which is one of the BRIC countries, is the largest country in the world by population, it has the second largest GDP by purchasing power parity, it is the second largest exporter in the world, and it is is the third largest importer in the world. Plus, approximately 91% of the population is literate. But since China has been and still is a communist country, investors still have some concerns.
One way to reduce the risk of investing in China is to look for stocks that pay dividends. Stocks with yields return your capital faster and can help reduce volatility. WallStreetNewsNetwork.com has just turned up fifteen China stocks that pay dividends. Unfortunately, many of them have very short track records (some as short as one year) and most pay their dividends annually. But you may be able to find a few gems.
PetroChina Co. Ltd. (PTR) has been paying dividends since the year 2000, and pays semi-annually (twice a year), most recently in May and September. This producer of oil and natural gas has a forward PE of 10 and pays a yield of 3.3%.
Yanzhou Coal Mining Co. Ltd. (YZC) has paid dividends since 1999, but only pays annually. The had a 5 for 1 slit last year. This coal mining company has a yield of 2.7%.
Another China company with a long term track record of paying dividends is China Petroleum & Chemical Corp. (SNP), which has been paying since 2001. This oil, gas, and chemical company has a forward PE of 8 and yields 2.7%.
For a free Excel database of high yielding China stocks, which can be sorted and changed, go to wsnn.com. Four of the stocks yield more than 3.5%. If you've been to the site before, you may need to clear out your cache if the High Yield China Stock database doesn't appear.