10 Emerging Asia Dividend Stocks To Consider

by: David Hunkar

Emerging market stocks have traditionally been favored by investors for their price appreciation potential. Most emerging markets were not known for high dividend yields and investors did not focus their attention on emerging market stocks for their dividend yields. However that need not be the case now as many emerging market companies pay high and consistent dividends similar to those in developed markets.

The following chart shows the Dividend Per Share (DPS) and Earnings Per Share (EPS) for the MSCI Emerging Market Index:

(Click to enlarge)

Some of the reasons to invest in emerging market dividend stocks include:

  • Companies in the MSCI Emerging Markets Index have increased dividend payments steadily for the last 10 years.
  • Unlike earnings, dividend payments have been more steady.
  • Dividend payout ratios have been stable and stood mostly in the 30% to 40% range.
  • As many of these companies mature the potential to increase dividend payouts is high.
  • Emerging market companies have lower debt levels than developed market companies.
  • Emerging companies also have high cash levels on their balance sheets.
  • The number of emerging stocks in the MSCI World Index having high dividends yields has increased from 60 in 1995 to 302 in 2011.

Source: Harvesting dividends from growing regions (pdf), UBS

10 Asian Emerging Stocks are listed below with their current dividend yields:

1.Company: Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM)

  • Current Dividend Yield: 3.15%
  • Sector: Semiconductors
  • Country: Taiwan

2.Company:PetroChina Co Ltd (NYSE:PTR)

  • Current Dividend Yield: 3.68%
  • Sector: Oil & Gas Operations
  • Country: China

3.Company:Philippine Long Distance Telephone Co (NYSE:PHI)

  • Current Dividend Yield: 4.14%
  • Sector:Communications Services
  • Country:Philippines

4.Company: Malayan Banking Bhd (OTCPK:MLYBY)

  • Current Dividend Yield:7.09%
  • Sector: Banking
  • Country: Malaysia

5.Company: Posco (NYSE:PKX)

  • Current Dividend Yield: 3.45%
  • Sector: Iron & Steel
  • Country: Korea

6.Company:China Petroleum & Chemical Corp (NYSE:SNP)

  • Current Dividend Yield: 4.40%
  • Sector: Oil & Gas Operations
  • Country: China

7.Company:Chunghwa Telecom Co Ltd (NYSE:CHT)

Current Dividend Yield: 5.81%

  • Sector: Telecom
  • Country: Taiwan

8.Company: S-Oil Corp (OTCPK:SOOCY)

  • Current Dividend Yield:
  • Sector: Oil & Gas Operations
  • Country: South Korea

9.Company: PT Telekomunikasi Indonesia (NYSE:TLK)

  • Current Dividend Yield: 3.37%
  • Sector: Telecom
  • Country: Indonesia

10.Company: SK Telecom Co Ltd (NYSE:SKM)

  • Current Dividend Yield: 5.81%
  • Sector: Telecom
  • Country: South Korea

Note: Dividend yields noted are as of December 2, 2012

Disclosure: No Positions