The market seems more uncertain now than ever. A second wave of the virus might soon infect a considerable portion of the American population. In addition, the results of the presidential election are being contested, and the economy is spinning its wheels.

In other words, this is a good time to invest in stocks that pay a dividend. Even a relatively small return of a couple of percentage points beats no return at all or a loss. Furthermore, a fairly diminutive return from a dividend stock is certainly better than the interest rate paid on money deposited into a bank’s savings account.

Without further ado, let’s take a look at three Chinese dividend stocks you should consider adding to your portfolio for the new year: China Mobile Limited (CHL), PetroChina Company Limited (PTR), and NetEase (NTES).

China Mobile Limited (CHL)

It is not often you find a stock with a 5.87% dividend. This is the near-guaranteed payout provided by CHL. CHL delivers a wide array of mobile telecom services throughout the entirety of China.

CHL is ranked 11th out of 35 stocks in the Telecom – Foreign space In our POWR Ratings service. Though CHL is not particularly popular outside of China, it is worthy of your attention simply because it has nearly a billion wireless customers.

China has bounced back from the pandemic in a reasonably seamless manner, which provides an opportunity for CHL. Plus, most stocks don’t come anywhere near a 6% dividend payout. Consider adding CHL to your portfolio, bank the yearly dividend, and be patient as the stock could gradually make its way back to its pre-coronavirus trading level.

PetroChina Company Limited (PTR)

PTR does a little bit of everything related to petroleum. This company explores for black gold, develops it, produces it, and sells it. Furthermore, PTR also makes money from natural gas. PTR has a 6.82% dividend, making it quite an attractive stock even though it operates in an industry that might not see better days right away.

Take a look at the PTR POWR Ratings, and you will find the stock has a “B” Peer Grade. PTR is ranked in the top five out of more than 30 publicly traded companies in the Foreign Oil & Gas industry.

It is only a matter of time until PTR bounces back. After all, PTR is one of China’s largest energy businesses. As long as China’s growth rate returns to normal, PTR will pop sooner or later.

NetEase (NTES)

Online communities are becoming that much more prevalent in response to the pandemic. People are shifting their interactions away from one another, instead opting for screen-based socialization that proves safe for everyone. NTES provides such an online community for Chinese residents. NTES also provides Chinese services and content through its web portal, internet games, and wireless services.

NTES has a dividend of 1.27%. Take a look at the NTES POWR Ratings, and you will be impressed: “B” ratings in the Peer Grade, Buy & Hold Grade, and Industry Rank components. NTES is ranked in the top 20 out of more than 100 China stocks. Analysts are bullish on NTES, setting an average price target of $106.80, indicating a potential upside of 13%. 

NTES has excelled since the pandemic started. The stock broke through the $100 benchmark in late August. Though profit-takers have pulled some money of the table in the months since, NTES is trending toward returning to the $100 to $110 range.

Want More Great Investing Ideas?

9 “MUST OWN” Growth Stocks for 2021

Why Investors DON’T Care About Covid-19 Anymore

5 WINNING Stocks Chart Patterns

CHL shares were trading at $30.91 per share on Tuesday afternoon, up $0.97 (+3.24%). Year-to-date, CHL has declined -22.98%, versus a 14.41% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

More Resources for the Stocks in this Article