A great investment for income investors with a long time horizon is in dividend-paying companies such as PAX Global Technology. Dividend stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. Furthermore, PAX Global Technology is considered undervalued, which means investors will benefit from both dividend income and capital gains over time. If you’re a buy and hold investor, these undervalued dividend stocks can generously contribute to your portfolio value.
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 (E-payment Terminal) products, and provision of related services in the People’s Republic of China and internationally. Formed in 2000, and currently run by Jie Lu, the company provides employment to 1,514 people and with the company’s market capitalisation at HKD HK$4.21B, we can put it in the mid-cap stocks category.
Over the past 3 years, PAX Global Technology has been distributing dividends back to its shareholders, with a recent yield of 2.09%. 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 18.84%. At the current payout ratio of 21.78%, 327’s yield surpasses Hong Kong’s low-risk savings rate of 1.66%. 327 is also undervalued by 41.66%, meaning 327 can be bought at an attractive price right now. Continue research on PAX Global Technology here.
Texhong Textile Group Limited (SEHK:2678)
Texhong Textile Group Limited, an investment holding company, primarily manufactures and sells yarns, grey fabrics, and garment fabrics. Started in 1997, and run by CEO Yongxiang Zhu, the company employs 38,024 people and with the market cap of HKD HK$9.81B, it falls under the mid-cap stocks category.
Over the past 10 years, Texhong Textile Group has been distributing dividends back to its shareholders, with a recent yield of 4.20%. 2678’s dividend per share have been growing over the past 10 years, with a payout ratio of 29.77%, indicating earnings are able to cover the payments. Furthermore, 2678’s dividend yield exceed Hong Kong’s low risk savings rate which currently sits at 1.66%. In addition to this, 2678 is also trading below its intrinsic value by 61.22%, which means 2678 is currently an attractive buy for those looking for dividend and capital gains. Continue research on Texhong Textile Group here.
China Lesso Group Holdings Limited (SEHK:2128)
China Lesso Group Holdings Limited, an investment holding company, manufactures and sells building materials and interior decoration products. The company currently employs 10000 people and with the market cap of HKD HK$17.06B, it falls under the large-cap group.
China Lesso Group Holdings has been paying dividend over the past 7 years. It currently paid an annual dividend of CN¥0.15, resulting in a dividend yield of 2.73%. 2128’s upcoming dividend are appropriated covered by its profits over the next three years, according to industry analysts, with a forecasted payout ratio of 20.72%. At the current payout ratio of 21.04%, 2128’s yield surpasses China’s low-risk savings rate of 1.66%. In addition to this, 2128 is also trading beneath its true value by 61.56%, which means 2128 is currently an attractive buy for those looking for dividend and capital gains. Continue research on China Lesso Group Holdings 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.