Tuesday, December 07, 2010
Update on High Yield China Stocks
China is planning interest rate hikes later this week, causing many Chinese stocks to drop in price. The country is making this move in order to keep inflation under control. Now that the news is out, it may be a buying opportunity. Investors who are willing to take the risk of investing in China stocks are choosing ones that pay dividends, in order to reduce risk by returning capital faster and possibly reducing volatility.
WallStreetNewsNetwork.com has just updated its list of over a dozen China stocks that pay dividends with yields ranging from one percent to as much as 7.5%.
The wireless telecom company, China Mobile Limited (CHL) trades at 11.6 times forward earnings and yields 3.3%. Dividends are paid twice a year.
PetroChina Co. Ltd. (PTR) has been paying dividends since 2000, and pays twice a year also, most recently in May and September. This producer of oil and natural gas has a forward PE of 9.9 and pays a yield of 3.3%.
Another China company with a long term track record of paying dividends is China Petroleum & Chemical Corp. (SNP), which has been paying semi-annually since 2001. This oil, gas, and chemical company has a forward PE of 6.6 and yields 2.3%.
For a free Excel database of over a dozen high yielding China stocks, which can be sorted and updated, go to wsnn.com. Eight of the stocks have yields in excess of 2%.
Author does not own any of the above.