With concerns about the U.S. economy starting to resurface, many investors have begun to re-examine their portfolio asset allocations to determine if they are taking on too much risk. Some investors have begun to shift their portfolio toward securities that will protect them from a variety of possible scenarios, such as higher than expected inflation, a double-dip in housing or further deterioration in employment numbers. One way many are de-risking their exposure to the U.S. has been through international diversification.
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Generally, when people invest in emerging markets such as the BRICS, Asia or South America, the first thing they look for is capital appreciation. It was not common a few years ago for investors to look globally to less-developed countries for dividends and income. However, as the U.S. economy has stagnated recently, many overseas economies have surged ahead, and having exposure to these countries would have added diversification benefits to your portfolio.
With that said, this article looks at some of the best-paying dividend companies with operations based out of Asia. Stocks with a market capitalization of less than $2 billion were not included in this list due to the overall higher volatility and risk of smaller companies, and our goals of relative safety and stable income.
|Philippine Long Distance Telephone||NYSE:PHI||6.17%||Philippines|
|Siliconware Precision Industries||Nasdaq:SPIL||6.01%||Taiwan|
|Huaneng Power International||NYSE:HNP||5.18%||China|
|City Telecom HK||Nasdaq:CTEL||4.87%||Hong Kong|
|SK Telecom||NYSE:SKM||3.95%||South Korea|
With a yield of just over 4% and a market cap of $185 billion, China Mobile is one of the more interesting names on this list. The company boasts a subscriber base more than twice the population of the U.S. at greater than 850 million users. In addition, it controls over 70% of the wireless market in China. Its sheer scale and market dominance make this company very intriguing, and it may be one company that is worth a deeper look.
In general, when looking to developing countries for income and diversification, often the largest companies with a dominant market share, a solid balance sheet and strong cash flows will offer the least risk. Many companies on this list fit those criteria and could be worth looking into to add to your portfolio. (For related reading, see Dividends Not To Be Ignored.)
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