China Mobile, Honda Can Drive Your Blue-Chip Yields

NEW YORK (TheStreet) --  In a low-interest-rate world, investors are forced to span the globe seeking yield. Many Asian income stocks offer robust dividends and healthy fundamentals that should please even the most demanding of investors. Three such blue-chips are China Mobile (CHL), Honda Motor (HMC) and Taiwan Semiconductor (TSM).

China Mobile is the world's largest mobile phone company.

If expanding in the China market is vital to the growth of Apple (AAPL), then China Mobile is the gatekeeper. While China Mobile leads in overall subscriptions, it is still lagging for those smartphones, however. That is an opportunity for long-term investors -- the 4G network for China Mobile is supposed to be active by April, which will allow for a deal with Apple.

China Mobile is down this year, but an alliance with Apple should rally the share price. For income investors, the lower stock price results in a higher dividend yield of 3.78%. The average dividend for a member of the Standard & Poor's 500 index is now around 1.9%. With a payout ratio of less than 30%, there is ample cash to raise the dividend or initiate buyback programs to reward shareholders (the mean S&P payout ratio is about 32%).

Honda also offers growth and value along with its 4.99% dividend yield.

The price-to-earnings growth ratio for Honda is just 0.77. Investing legend Peter Lynch considers this to be one of the most important indicators. A fairly valued stock has a price-to-earnings growth ratio of 1 (the lower the better). For Honda, it is just 0.77. The price-to-sales ratio is only 0.69, which means that each dollar of sales is going at more than a 30% discount in the stock price.

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