When dividend-paying companies are undervalued, investors stand to gain a constant stream of dividend income on top of capital gains, as over time, the company market value move towards what it is intrinsically worth. I’ve made a list of value-adding dividend-paying stocks for you to consider for your investment portfolio.
Cowell e Holdings Inc. (SEHK:1415)
Cowell e Holdings Inc., an investment holding company, engages in the design, development, manufacture, and sale of camera modules for smartphones, multimedia tablets, laptops, PDAs, and other mobile devices with camera functions in China and South Korea. Established in 1992, and currently lead by Kyung Lee, the company size now stands at 4,267 people and with the stock’s market cap sitting at HKD HK$1.50B, it comes under the small-cap stocks category.
Over the past 1 years, Cowell e Holdings has been distributing dividends back to its shareholders, with a recent yield of 3.82%. 1415’s upcoming dividend are appropriated covered by its profits over the next three years, according to industry analysts, with a forecasted payout ratio of 25.98%. At the current payout ratio of 26.48%, 1415’s yield surpasses China’s low-risk savings rate of 1.67%. In addition to this, 1415 is also trading beneath its true value by 56.78%, meaning 1415 can be bought at an attractive price right now. More detail on Cowell e Holdings here.
Nameson Holdings Limited (SEHK:1982)
Nameson Holdings Limited designs, manufactures, and sells knitwear products. Founded in 1990, and headed by CEO Ting Chung Wong, the company size now stands at 13,400 people and with the stock’s market cap sitting at HKD HK$3.46B, it comes under the mid-cap category.
Nameson Holdings has been paying dividend over the past 2 years. It currently paid an annual dividend of HK$0.04, resulting in a dividend yield of 2.63%. At the current payout ratio of 36.79%, 1982’s yield exceeds Hong Kong’s low risk savings rate of 1.67%. Analysts forecast future payout ratio to be 38.30%, indicating that 1982’s upcoming dividend payments are well-covered by earnings. In addition to this, 1982 is also trading beneath its true value by 53.53%, meaning 1982 can be bought at an attractive price right now. More on Nameson Holdings here.
PAX Global Technology Limited (SEHK:327)
PAX Global Technology Limited, an investment holding company, engages in the development and sale of electronic funds transfer point-of-sale products worldwide. Formed in 2000, and run by CEO Jie Lu, the company employs 1,514 people and with the company’s market capitalisation at HKD HK$4.40B, we can put it in the mid-cap stocks category.
PAX Global Technology has been paying dividend over the past 3 years. It currently paid an annual dividend of HK$0.08, resulting in a dividend yield of 2.00%. 327’s upcoming dividend are appropriated covered by its profits over the next three years, according to industry analysts, with a forecasted payout ratio of 18.85%. At the current payout ratio of 21.78%, 327’s yield surpasses Hong Kong’s low-risk savings rate of 1.67%. 327 is trading beneath its true value by 41.08%, meaning 327 can potentially bring about strong capital gains through mispricing. More on PAX Global Technology here.
For more mispriced dividend stocks to add to your portfolio, explore this interactive list of undervalued dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.