I have been looking at investing in dividend stocks listed in HKSE as a form of
increasing my geographical diversification. As US corporate bond price hit a record high and SGX REITs run up in the last one month, I started to spend more time researching HKSE dividend counters for alternative passive income. HKSE market
capitalization greatly exceeds that of SG due to many China H shares listing and this increases my
pool of opportunities to buy undervalued stocks. Currently, China economy is the least impacted by covid due to good control measurement by its government. Its domestic economy should be large enough to help Chinese companies to cushion the blow of this global pandemic.
Since US govt started to blacklist China companies and delist China ADR stocks on NYSE, many Chinese stocks with parallel listing on HKSE have plunged significantly. I took this opportunity to build my HKSE dividend portfolio with 100K allocated buying some local HK and China H Shares. Due to the sharp run up in share price during January, I manage to invest about 94.5K which will produce about $6.2 K dividend annually.
Financial summary of counters invested:
1) LINK is one of the largest REIT in the world with a market cap close to 20 billion USD. Its current price is still about 20% below pre-covid high. It has one of the best balance sheet among all the REITs that it is unlikely to cut dividend or raise cash via right issues.
2) Fortune REIT has low gearing of about 20% and unlikely to raise cash via right issues.. Its current price is still about 24% below pre-covid high.
3) CNOOC is victim of US govt blacklist. However, its business is 100% based in China and won't be impacted by US delisting. Its current price is about 41% below pre-covid high.
4) China Mobile is one of largest wireless carrier in term of subscribers.It has one of best balance sheet especially when you compare against Singtel. Its current price is still about 33% below pre-covid high. China Mobile is also a victim of US govt blacklist. However, its business is 100% based in China and won't be impacted by US delisting.
5) Sinopec Engineering has one of the highest yield among H shares with excellent cash flow and little debt. Its current price is still about 26.5% below pre-covid high. Its parent company Sinopec is one of the largest listed company in China.
6) ICBC .. All 3 Chinese banks below have low P/B , P/E and sustainable dividend yield of > 5%.
7) CCB
8) BOC
9) Power Assets . Its current price is still about 30% below pre-covid high.
