Evelyne check out these dividend`paying chinese stock and let me know how many of the, are fairly valued. I thing the answer is; 5% dividend does not make a difference as investors fear to lose 100% due to a scam. Let the company continue its operation and accumulate 20-30m in operating cash. Time and trust will add more to the shareprice than dividend.
Some of these are state owned enterprises. There is certainly some hidden profit skimming going on by the central party, but I am guessing that is less than 5%. The ones that are private like SFUN are anyone's guess.
I have been trying to get information on the GSH railroad for a while and not a lot of luck.
Nobody seems to be able to explain or justify how this stock can continue to trade at an EPS of one amid consistently good performance. Perhaps the expiration of the warrants this fall will shed some light. This company is ripe for a takeover or going private and getting the warrants out of the way would be a positive. A dividend would provide minimal support in this situation IMO. I swing for doubles, triples and home runs. Often I strike out though.