[caption id="attachment_4051" align="alignright" width="150" caption="Photo by Duchamp"]
[/caption]I got to know about China Mobile as a dividend stock while
research some of the top international telecom dividend companies in the world. China Mobile was an asia representative and what caught my attention is that it mirrors that of Vodafone.
Singapore investors would be glad to know that you can easily trade or get invested into China ADRs such as China Mobile
on the SGX via your brokerages such as POEMS, Kay Hian and Lim and Tan. You can get dividends from this ADRs as well, but from what I Know with-holding taxes on dividends still applies.
Dividend Aristocrats index measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years.
So to say that China Mobile has the potential to be a dividend aristocrat would be saying that
- it has the capability of increasing free cashflow consistently
- manage debt to asset ratio for the longterm
- sustainable business model and business economics
Lets take a look if fundamentally China Mobile is able to satisfy that.
China Mobile is one of the largest mobile telecommunications company in the world by virtue of having the world’s largest subscriber base with the potential to grow further.
For a telco, it is important to have size because
- purchaser power – you demand a large amount of equipment such that you have bargaining power
- supplier power – you are large enough to determine the future direction of the industry
- price competitive – you are able to undercut your competitors and still be able to be profitable
Read more...
