The big rally that China stocks experienced this year has tempered, and that's good news for those interested investors who sat on the sidelines, waiting for lower prices.
Many of these stocks have dropped off substantially from their highs, and they may be worth another look. And for those investors who want to mitigate their risk, investing in a stock that pays a dividend helps cushion the risk.
Stockpickr has reviewed the entire list of China stocks that trade in the U.S. on either the
New York Stock Exchange
and compiled a portfolio of the
One of the best-yielding stocks on the list is
Huaneng Power International
, which pays a dividend at a rate of 6.7%. This operator of thermal power plants reported earnings a few weeks ago and announced that equity net profit increased by 25% in the first nine months of the year and total power generation increased by 11%. The stock has a price-to-earnings (P/E) ratio of 16.3 and a P/E-to-growth (PEG) ratio of 3.5.
Huaneng Power shares are owned by
(ICTUX), a four-star Morningstar-rated fund that specializes in investing in utility and telecom stocks. It has generated an average annual return of about 22% for the last three years.
ICON also has in its portfolio several other dividend-paying stocks, including
Constellation Energy Group
( CEG), which pays 1.8% ,
, at a 2.5% rate, and
, with a yield of 2.2%.
Another stock on the China yield list is
China Telecom Corp
, which yields 1.6%. This provider of landline telecommunications and broadband services last month reported it beat analysts' expectations by 4% in the third quarter and added 48.4 million new customers. The stock has a P/E of 20 and a PEG of 5.7.
China Tel is listed in the
, a Stockpickr portfolio that also includes
Companhia Vale do Rio Doce
, yielding 1%, and
( BTM), with a yield of 0.6%.
is a stock that yields 2.8%.
( BRKA) announced that it sold off its position in this oil and gas explorer and producer during the third quarter. PetroChina has a P/E of 23.8 and a PEG of 1.6.
Petrochina is also listed in a portfolio called
, which lists the stocks favored by Hugh Young, manager of the Aberdeen Asia Pacific Fund. The fund is up almost 27% through October of this year and has had an average annual return of 28% over the past five years. The fund also contains
, an India-based technology and outsourcing company that yields 0.7%.
Go to Stockpickr.com to check the entire list of
At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.
James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for
The Financial Times
and the author of
Trade Like a Hedge Fund
Trade Like Warren Buffett
. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;
to send him an email.
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