How China Mobile Sustains A 5% Dividend Yield, In 5 Charts

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About: China Mobile Limited (CHL), Includes: CHA, CHU, FIVG, T, VZ
by: Tariq Dennison
This article is exclusive for subscribers.
Tariq Dennison
Registered investment advisor, long-term horizon, foreign companies, ETF investing
Summary

China Mobile is the largest mobile phone operator in the world, again trading at a 5% dividend yield backed by steady free cash flows.

Compared with both domestic and US telecom counterparts, China Mobile sustains higher profitability ratios and cheaper valuation multiples.

Being the top provider of 5G in the world's largest market indicates more upside than downside over the next decade.

Being >70% owned by the Chinese government is the primary weight on shareholder returns, so this stock is better considered a junior high-yield bond than a likely multiplier.

We first bought shares of China Mobile Limited (CHL) several years ago, when its dividend yield was above 5%, and are now looking to add more now that the dividend yield is back