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A Holistic Look At China Telecom Corporation Limited (HKG:728)

Attractive stocks have exceptional fundamentals. In the case of China Telecom Corporation Limited (HKG:728), there’s is a highly-regarded dividend payer that has been able to sustain great financial health over the past. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on China Telecom here.

Excellent balance sheet established dividend payer

728’s debt-to-equity ratio stands at 25%, which means its debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. 728 appears to have made good use of debt, producing operating cash levels of 1.2x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

SEHK:728 Historical Debt October 23rd 18

For those seeking income streams from their portfolio, 728 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.7%.

SEHK:728 Historical Dividend Yield October 23rd 18

Next Steps:

For China Telecom, there are three fundamental aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 728’s future growth? Take a look at our free research report of analyst consensus for 728’s outlook.
  2. Historical Performance: What has 728’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 728? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.