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Dividend investors looking for a new stock to add to their portfolio should consider Lonking Holdings, Bank of Chongqing and Times China Holdings. These companies are currently undervalued, which means investors will gain from dividend income as well as capital appreciation over time. Today I will share with you my mispriced dividend-paying companies you should be considering for your portfolio.
Lonking Holdings Limited (SEHK:3339)
Lonking Holdings Limited, an investment holding company, manufactures and distributes wheel loaders, road rollers, excavators, forklifts, and other construction machinery in Mainland China. Started in 1993, and run by CEO San Yim Li, the company employs 7,481 people and has a market cap of HKD HK$15.49B, putting it in the large-cap group.
Over the past 10 years, Lonking Holdings has been distributing dividends back to its shareholders, with a recent yield of 4.42%. Best dividend payers in China, on average, yield 4.21%. 3339 exceeds this by 0.21%, and according to industry analysts, its future payout ratio should still allow this yield to hold. This is consistent with the growing dividend trend we’ve observed from 3339 over time. 3339 is undervalued by 35.71%, which means 3339 is currently an attractive buy for those looking for dividend and capital gains. More on Lonking Holdings here.
Bank of Chongqing Co., Ltd. (SEHK:1963)
Bank of Chongqing Co., Ltd. provides various banking services and related financial services primarily in Mainland China. Established in 1996, and run by CEO Hailing Ran, the company now has 4,066 employees and with the market cap of HKD HK$17.95B, it falls under the large-cap category.
Over the past 5 years, Bank of Chongqing has been distributing dividends back to its shareholders, with a recent yield of 2.54%. At the current payout ratio of 9.83%, 1963’s yield exceeds China’s low risk savings rate of 1.66%. Analysts forecast future payout ratio to be 16.61%, indicating that 1963’s upcoming dividend payments are well-covered by earnings. 1963 is also trading below its intrinsic value by 68.58%, which means 1963 is currently an attractive buy for those looking for dividend and capital gains. Dig deeper into Bank of Chongqing here.
Times China Holdings Limited (SEHK:1233)
Times China Holdings Limited, an investment holding company, operates as a property development company in the People’s Republic of China. Established in 1999, and run by CEO Chiu Hung Shum, the company now has 7,492 employees and with the stock’s market cap sitting at HKD HK$20.61B, it comes under the large-cap category.