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  • 14 Promising Chinese Dividend Stocks [View article]
    It seems to me that chinese stocks could do well over time, however i don't know whether the picks you have selected are mature enough to be considered "dividend plays". Before you consider investing in dividend stocks for reasons other than current yield, ask yourself the following questions?

    How do you factor in the different share classes for chinese stocks?

    Are dividends sustainable?

    Are companies' earnings in a position to grow so that they could support a growing dividend?

    Is there a long history of consistent dividend increases ( at least a decade)?

    Another issue with chinese stocks could be that if you end up overpaying for their growth now, you could suffer from getting below average returns for at least one decade. It seems that many investors are simply following the theme of "what's hot now", versus what you be a wealth builder for the future. Chinese stocks look speculative to me right now, although in a few years I could definitely reconsider them.

    If you really want to get involved with emerging markets, buy of US's large multinationals which have globally diversified revenue streams. In fact the ten of the largest US stocks by market cap of the S&P 500 receive almost half of their revenues internationally.
    Nov 15 13:42 pm |Rating: +9 -3 |Link to Comment
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