- 3.88% dividend, Very likely they will increase dividend later this year. Will push dividend rate to over 4%
- A Chinese company. As USD is going to devalue. It makes this company have currency advantage.
- 10 years revenue and earning growth is amazingly stable. Very solid financial statement.
- Competition wise, this company is also in a solid position. 70% market share
- Low price. Today, it trades at 10.86 PE. Partially cause by China'a major policy change. That punish entire China stocks market. However, government policy will not change how this company make money. People will not stop using their mobile phone because policy change. Even inflation will have very little effect in this company's profitability.
I start accumulate position for a friend. Due to China's policy uncertainty, i play extra safe by sell $45 covered call. If this stock move below $45, i will buy much bigger chunk and will not sell call. This is a very good long term holding.
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