Wednesday, June 24, 2015
China Mobile Income in a down market
China Mobile, symbol CHL, is not a dividend machine but it does pay about 2.6% in dividend yield. You get paid to wait. I have owned it quite a while. If you add today, you will pay about $66.35 and you can sell a September $70 call for about $1.65 and if you own it on 9/2, you are highly likely to receive the next quarterly dividend.
Although CHL is not a dividend machine because the yield is too low and the dividend increases are affected by currency exchange issues, the D/E ratio of only .0058 makes the risk worth it for me.
The table below presents data on the call I sold today.
Disclosure: Long CHL with calls