Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation.
At 247 Wall St., we always like to remind our readers about the impact total return has on portfolios because it is one of the best ways to help improve the chances for overall investing success. Again, total return is the combined increase in a stock’s value plus dividends.
For instance, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%—10% for the increase in stock price and 3% for the dividends paid.
We decided to screen our 24/7 Wall St. China stock dividend database, looking for top Chinese companies that trade in the United States, either over-the-counter or on major indices, and pay huge dividends.
Five stocks caught our attention, and while investing in China holds more risk than here at home, there could be some considerable upside and total return potential for investors with a higher risk tolerance.
Bank of China
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This gigantic financial institution offers safety and a hefty 8.51% dividend. Bank of China Ltd. (OTC: BACHY), together with its subsidiaries, provides various banking and financial services in mainland China, Hong Kong, Macao, Taiwan, and internationally.
It operates through:
- Corporate Banking
- Personal Banking
- Treasury Operations
- Investment Banking
- Insurance
The Corporate Banking segment provides:
- Current accounts
- Deposits
- Overdrafts
- Loans
- Payments and settlements
- Trade-related products
- Credit facilities
- Foreign currency
- Derivatives
- Wealth management products for corporate customers, government authorities, and financial institutions
The Personal Banking segment offers savings deposits, personal loans, credit cards and debit cards, payments and settlements, wealth management, and funds and insurance agency services to retail customers.
The Treasury Operations segment offers foreign exchange transactions, customer-based interest rates, foreign exchange derivative transactions, money market transactions, proprietary trading, and asset and liability management.
The Investment Banking segment provides debt and equity underwriting and financial advisory, sale and trading of securities, stock brokerage, investment research, asset management services, and private equity investment services.
The Insurance segment provides underwriting services for general and life insurance businesses and agency services. In addition, the company operates debt-to-equity swaps and other supporting aircraft and financial leasing businesses.
BOC Hong Kong
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This is another of the major financial companies in China paying a 7.52% dividend and is a solid idea for more conservative investors. BOC Hong Kong (Holdings) Ltd. (OTC: BHKLY) an investment holding company, provides banking and related financial services to corporate and individual customers in Hong Kong, China, and internationally.
The company operates through four segments:
- Personal Banking
- Corporate Banking
- Treasury
- Insurance
It offers savings, current, and time deposit accounts, mortgage plans, corporate deposits, and payroll and e-cheques services.
The company also offers:
- Cross-border financial and remittance services and securities
- Funds, foreign exchange services, precious metals and FX margin services
- Currency linked investments
- Bonds
- Market information services
- Monthly savings plans
- Structured products
- Business and personal loans
In addition, it provides business and accident protection; medical, travel, and leisure; family protection; RMB and personal life insurance products, and credit cards.
It also provides wealth management and overdraft services, mandatory provident fund schemes, private and corporate banking services, internet, phone, and mobile banking services, trade-related products, and other credit facilities.
COSCO Shipping
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Paying an insane 26.33% dividend is a stock trader’s dream. COSCO Shipping Holdings Co. Ltd. (OTC: CICOY) is an investment holding company that engages in container shipping, managing and operating container terminals, and other terminal-related businesses in the:
- United States
- Europe
- Asia Pacific
- Mainland China
- internationally
It operates through:
- Container Shipping Business
- Terminal Business segments
The company offers:
- Freight forwarding and transportation
- Vessel chartering
- Container transportation
- Marine, vessel management and manning
- Cargo and liner agency
- Logistics, document
- Shipping agency and other sea transport
- Container stack
- Cargo storage
- Cargo transportation services
It is also involved in the design and manufacture of computer software, as well as the provision of technology services and solutions, asset management business, and operation of terminals.
LexinFintech Holdings
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The stock is currently being sold at a price below $2 pays a massive 12.68% dividend, and is another stock that fast-money traders love. LexinFintech Holdings Ltd. (NASDAQ: LX), through its subsidiaries, provides online consumer finance services in the People’s Republic of China.
The company operates Fenqile.com, an online consumption and consumer finance platform that offers:
- Installment purchase and personal installment loans
- Online direct sales with installment payment terms
- Le Hua Card, a scenario-based lending
It also provides technology-driven platform services for financial institution customers and partners to:
- Increase revenues
- Manage financial risks
- Enhance operating efficiency and service quality
- Enhance collections, and reduce overall costs
It also offers Maiya application, a location-based services shopping experience with buy-now and pay-later options; and Juzi Licai, an online investment platform.
In addition, the company offers technical support and consulting, software development, financing guarantees, and financial technology services.
Lufax Holding
Source: China Photos / Getty Images
This tech financial and credit services company could also catch low-price stock traders’ attention and pay a massive 14.71% dividend. Lufax Holding Ltd. (NYSE: LU) operates a technology-empowered personal financial services platform in China.
The company offers:
- Loan products, including unsecured loans
- Secured loans, and consumer finance loans
It also provides:
- Wealth management platforms, such as Lufax (Lu.com), Lu International (Singapore), and Lu International (Hong Kong) to the middle class and affluent investors to invest in products and portfolios
- Retail credit facilitation services platform that offers small business owners with lending solutions
- Technology empowerment solutions for financial institutions.
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