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Dividend investors looking for a new stock to add to their portfolio should consider Nameson Holdings, West China Cement and IGG. These companies are currently undervalued, which means investors will gain from dividend income as well as capital appreciation over time. Here are three undervalued dividend stocks that could be valuable additions to your current holdings.
Nameson Holdings Limited (SEHK:1982)
Nameson Holdings Limited designs, manufactures, and sells knitwear products. Established in 1990, and headed by CEO Ting Chung Wong, the company now has 13,400 employees and with the market cap of HKD HK$4.38B, it falls under the mid-cap category.
Nameson Holdings has been paying dividend over the past 1 years. It currently paid an annual dividend of HK$0.04, resulting in a dividend yield of 2.08%. At the current payout ratio of 36.79%, 1982’s yield exceeds Hong Kong’s low risk savings rate of 1.66%. Analysts forecast future payout ratio to be 35.11%, indicating that 1982’s upcoming dividend payments are well-covered by earnings. 1982 is undervalued by 46.81%, meaning that now is a good time to buy 1982 at a good price. Continue research on Nameson Holdings here.
West China Cement Limited (SEHK:2233)
West China Cement Limited, an investment holding company, manufactures and sells cement and cement products in Western China. Formed in 1991, and now led by CEO Weiping Ma, the company employs 4,398 people and has a market cap of HKD HK$7.55B, putting it in the mid-cap group.
West China Cement has been paying dividend over the past 7 years. It currently paid an annual dividend of CN¥0.032, resulting in a dividend yield of 2.32%. 2233’s upcoming dividend are appropriated covered by its profits over the next three years, according to industry analysts, with a forecasted payout ratio of 61.52%. At the current payout ratio of 19.83%, 2233’s yield surpasses China’s low-risk savings rate of 1.66%. 2233 is also trading below its intrinsic value by 60.01%, meaning 2233 can potentially bring about strong capital gains through mispricing. More on West China Cement here.
IGG Inc (SEHK:799)
IGG Inc, an investment holding company, engages in the development and operation of mobile online games in Asia, Europe, North America, and internationally. Established in 2006, and now led by CEO Zongjian Cai, the company currently employs 1,056 people and has a market cap of HKD HK$13.98B, putting it in the large-cap stocks category.
Over the past 4 years, IGG has been distributing dividends back to its shareholders, with a recent yield of 4.78%. 799’s yield exceeded Singapore’s top dividend payer average yield of 4.21%. The company’s payout ratio currently stands at 29.85%, illustrating that its dividend payments are well-covered by its earnings. In addition to this, 799 is also undervalued by 40.15%, making 799 an attractive investment at the current share price of HK$10.50. Continue research on IGG here.