More from Emerging Money

Chinese tech stock Nam Tai pays dividends, boasts surging share price

By Emerging Money August 22, 2012, 10:00:14 AM EDT

Nam Tai Electronics ( NTE , quote ) 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%.

Image courtesy Satori: http://www.photoxpress.com/search-stock-photos-photographer/satori/870072 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 discount.

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 ( AAPL , quote ) 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.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, International, Stocks

Referenced Stocks:



Latest News Video



From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.43 0.07  0.52%
CSCO $ 24.24 0.35  1.48%
MSFT $ 34.87 0.79  2.32%
F $ 15.08 0.44  3.01%
ARUN $ 13.10 4.51  25.61%
SIRI $ 3.50 0.05  1.45%
GE $ 23.46 0.19  0.82%
S $ 7.32 0.04  0.55%