Following our previous piece where we identified 9 Singapore cash rich companies that pay more than 5% dividends, we now look at 5 cash rich Hong Kong stocks that pay more than 7% dividends, providing for a higher level of compensation for time in the market.
This time, we identify 5 companies listed in Hong Kong with a net cash holding of at least 50% of market cap. We also make the selection more robust by using a variation of the Ben Graham Net cash method, with the formula being the sum of cash and short term investments minus total liabilities.
The reason short term investments are included into the formula is because some of these companies have such strong balance sheet with so much excess cash that they have deployed them into a variety of short term investments such as fixed deposits, bonds or even equities so as to obtain better returns for their idle pile....