The market obsession is with capital gains for stocks, hoping to bag the next buyback hero of a company or a plump takeover target. Returns have been long forgotten and when we think of returns, Reits and Bonds come to mind.
When most of us think about returns on stocks, our minds would gravitate to the blue chips and the bellwether names. Out of this group, banks are left out ! Banks = GFC = Low Yields = High Risk
Investors would buy Coco bonds, under taking huge loss sharing responsibilities and sleep sound rather than look at bank shares.
That is perhaps the reason for my personal astonishment the revelation by a good friend, who happens to be a lawyer, that Chinese banks are paying good dividends.
My skepticism rose, how good can it be ? Cannot be better than Reits surely ?
I decided to do some rough numbers, pulling ......