Thursday, October 17, 2013

What's Up With China Besides China Stocks?

If you have watched the China stocks over the last three months, you would have seen a huge rise, to the tune of 14.93% for the SPDR S&P China (GXC). When you compare this to the S&P 500, which is up only 2.42% during that same time frame, the difference is significant.

So if an investor wants to get in on the China action, what should they do? One way to reduce risk is to look for stocks that pay decent dividends. Dividends tend to reduce the volatility of a stock and return the investor's capital faster, helping to reduce some of the risk. According to, there are almost a dozen high yield China stocks.

Many of these stocks pay dividends only once a year, however, there are several that pay semi-annually. One example is Petrochina (PTR) which provides investors with a yield of 4.2%. This producer of oil and gas trades at 11.2 times trailing earnings and 9.1 times forward earnings, with a reasonable price to earnings growth ratio of 1.26.

Another China income stock is China Petroleum & Chemical (SNP). The comapny name basically describes what the company does. The stock trades at 8.6 times training earnings and a very favorable 7.1 times forward earnings. The PEG ratio is a bit high at 2.42. The yield is 3.2%, with the dividends paid every half year.

The telecom company China Mobile Limited (CHL) has a price to earnings ratio of 10.8. The company pays its dividend semi-annually also, providing a yield of 3.6%.

If you want a list of these and other high yield stocks, go to to get the free list of high yield China stocks.

Disclosure: Author did not own any of the above at the time the article was written. 


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