In these times of turmoil, it's not a bad idea to accumulate shares that can offer a 10 percent yield.
One candidate is Goldlion Group (0533) which makes and sells garments, leather goods and accessories, licenses brand names, and invests in mainland and Hong Kong properties.
Despite the less than satisfactory business environment in Hong Kong, overall turnover for the apparel business grew by 6 percent.
Income from leasing activities hit HK$109.24 million, up 23 percent from 2007. Without any loans or financial products on its balance sheet, Goldlion has the capability to sail through the current adverse situation. Last year's net profit fell 10 percent to HK$290 million. But sales rose 33 percent to HK$1.43 billion. Earnings per share were 29.3 HK cents.
Its total annual dividend of 18 HK cents meant a yield of 10.9 percent at a stock price of HK$1.64. Even if the dividend falls this year to just 1 HK cent, the yield will top 6 percent.
Goldlion closed yesterday at HK$1.74. Below HK$1.50, it can be a bargain. Dr Check and/or The Standard bear no responsibility for any investment decision made based on the views expressed in this column.
