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7 Crash-Proof Dividend Stocks

High dividend yields mean these stocks have nothing to fear

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High Dividend Stocks — China Mobile (CHL)

dividend-stocks-dividend-yieldMarket Cap: $176.5 billion
Dividend Yield: 5.1%
Sector: Telecom

Domestic telecom stocks like AT&T (T) and Verizon (VZ) are old fallbacks among dividend investors thanks to hefty yields above 5%.  

But if you’re looking for an alternative to these players, consider China telecom giant China Mobile (CHL) which has a respectable 5.1% yield itself. Unlike entrenched U.S. companies with little room for revenue growth, CHL just reported double-digit sales growth in 2013.

And considering it already commands more than 750 million mobile subscribers — almost two thirds the mobile users in China and more than twice the entire population of the U.S. — that kind of growth is impressive, given its current scale.

Sure, China is a rocky region to invest in now — and China Mobile just upset investors with a big drop in earnings thanks to big investment in its network last year. But the company is growing fast and remains the dominant telecom provider in a country that is getting more wired every day. Much of the negativity has already been priced in, in my mind.

On the dividend front, China Mobile has been kind to shareholders by increasing its payouts steadily; its dividend has grown 550% in 10 years vs. just 47% for AT&T and 38% for Verizon in the same period. Furthermore, the China Mobile dividend payout ratio is about half of forecasted 2014 earnings vs. almost 69% for AT&T and 65% for Verizon.

More growth potential, more dividend potential? Sounds like one of the best telecom dividend stocks to me.

Article printed from InvestorPlace Media,

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