Nam Tai Electronics (
) is a very attractive stock for investors seeking dividends and
gains from momentum trading. The share price has increased in
market action for the past week, month, quarter, six months and
52 weeks. Year to date, the company is up by 35.14%.
Based in Shenzhen, Nam Tai provides "electronics manufacturing
and design services to the original equipment manufacturers of
telecommunication and consumer electronic products." Nam Tai
operates in both telecom components assembly and consumer
electronic and communication products.
Nam Tai has very attractive features and valuations. Most
important for a dividend-paying stock is above-average yield. The
average dividend yield for a member of the Standard & Poor's
500 Index is about 2%. Nam Tai by contrast, provides dividend
income to its shareholders at a 4% rate.
There is plenty of cash on the balance sheet to sustain the
dividend. In addition, even though the stock price has soared it
still has very attractive valuations. The price-to-sales ratio is
just 0.50. That means investors are buying each dollar of sales
for only 50 cents as reflected in Nam Tai's share price. The
price-to-book ratio is just 0.97, so assets are being sold at a
Even though Nam Tai is up 46.14% for the past year of market
action, and close to its year high, few are betting that it will
fall. The short float for Nam Tai Electronics is just 0.50%. A
short float of 5% is considered troubling for a company.
Many stocks in the tech sector are up
as a result of Apple (
reaching new highs
, with the iPhone 5 scheduled for release on September
12. But Nam Tai has much to offer as a dividend-paying stock
with appealing valuations. Not to mention that the company was
surging when Apple was falling in recent market action.