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Investors’ Favorite Undervalued Dividend Stocks

Andrew Edmonds

361 Degrees International and Tianneng Power International are dividend stocks on my list that are potentially undervalued. This means their current share prices are trading well-below what the companies are actually worth. Investors stand to gain a constant stream of dividend income over time as well as expected capital gains through share price appreciation. If you’re a buy and hold investor, these undervalued dividend stocks can generously contribute to your portfolio value.

361 Degrees International Limited (SEHK:1361)

361 Degrees International Limited, an investment holding company, manufactures and trades in adults sporting goods primarily in the People’s Republic of China. Started in 2003, and currently headed by CEO Wuhao Ding, the company currently employs 9,629 people and with the company’s market cap sitting at HKD HK$5.87B, it falls under the mid-cap group.

361 Degrees International has been paying dividend over the past 8 years. It currently paid an annual dividend of CN¥0.067, resulting in a dividend yield of 2.37%. 1361’s upcoming dividend are appropriated covered by its profits over the next three years, according to industry analysts, with a forecasted payout ratio of 42.45%. At the current payout ratio of 32.78%, 1361’s yield surpasses China’s low-risk savings rate of 2.25%. 1361 is trading beneath its true value by 43.70%, meaning 1361 can be bought at an attractive price right now. More detail on 361 Degrees International here.

SEHK:1361 Historical Dividend Yield Mar 12th 18

Tianneng Power International Limited (SEHK:819)

Tianneng Power International Limited, an investment holding company, develops, produces, and sells motive, wind, and solar power storage batteries for the electric vehicle market in the People’s Republic of China. Formed in 1986, and currently headed by CEO Tianren Zhang, the company provides employment to 18,447 people and with the company’s market capitalisation at HKD HK$8.56B, we can put it in the mid-cap category.

Tianneng Power International has been paying dividend over the past 10 years. It currently paid an annual dividend of CN¥0.26, resulting in a dividend yield of 3.39%. Best dividend payers in China, on average, yield 3.18%. 819 exceeds this by 0.21%, and according to industry analysts, its future payout ratio should still allow this yield to hold. This is consistent with the growing dividend trend we’ve observed from 819 over time. 819 is also trading beneath its true value by 61.15%, which means 819 is currently an attractive buy for those looking for dividend and capital gains. Interested in Tianneng Power International? Find out more here.

SEHK:819 Historical Dividend Yield Mar 12th 18

Stella International Holdings Limited (SEHK:1836)

Stella International Holdings Limited develops, manufactures, and retails footwear products and leather goods for men and women. Established in 1982, and now led by CEO Li-Ming Chen, the company currently employs 67,000 people and has a market cap of HKD HK$8.94B, putting it in the mid-cap group.

Stella International Holdings has been paying dividend over the past 10 years. It currently paid an annual dividend of US$0.60, resulting in a dividend yield of 5.32%. Its dividend yield exceeds the top dividend-paying companies in Hong Kong, with the average dividend yield of 3.18%. Furthermore, its dividend payment has been increasing over time, and analysts expect future earnings to cover this payout moving forward. 1836 is trading beneath its true value by 28.39%, meaning that now is a good time to buy 1836 at a good price. Interested in Stella International Holdings? Find out more here.

SEHK:1836 Historical Dividend Yield Mar 12th 18

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.