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(ACH) Alumium Corp of China: dividend yield 5%, Revenue growth 79%, Earning growth 44%. How can I resist? March 20, 2007

Posted by deminvest in ACH Aluminium Corp of China, China stock, growth stock, investment, Single stocks, stock I own, stocks, stocks that pay high dividends.
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Aluminum Corp is China’s largest Aluminium producer.

aluminium.jpg

It is good to produce Aluminium in the spot where there is World’s largest builing activity. This is probably why ACH is growing at such fast pace.

Aluminum Corp is China is very cheap:

Forward P/E : 8.24

Price/Book value: 0.51 Meaning markets value ACH one half of what its Books say.

moreover Alumium Corp of China has very small debts.

But honestly, what makes me a greedy proletarian… Is the idea of getting $50 a year dividend for my $1000 investment!

So I will break again my investment strategy… and get my few Aluminium Corp of China shares in the next…

5 minutes !

Comments»

1. deminvest - March 20, 2007

I bough 40 (ACH) Alumium Corp of China shares.
I paid $25,21per share.
I paid a total of $1008.4.

Let the force be with ACH!

2. mckinnonjake - March 21, 2007

what is the real dividend yield and when are dividend pay dates for ACH?

3. deminvest - March 21, 2007

I am confused myself mckinnonjake.

On Yahoo Finance they say:

Forward Annual Dividend Rate: 3.04
Forward Annual Dividend Yield: 12.30%
Trailing Annual Dividend Rate: 1.25
Trailing Annual Dividend Yield: 4.10%

I have done some research. I didn’t find any evidence about this future Dividend hike.

I ended up believing that maybe Yahoo Finance made a mistake.

The mistake for Forward Dividend Yield is probably connected with the fact that some foreign companies pay dividends only twice a year while US companies usually pay them quarterly. Actually ACH seems to pay them out yearly.

Those should be the dates of recent dividend payouts, according to someone anonymous who posted on yahoo finance boards:

SEEMS LIKE THEY PAY THEIR DIVIDENDS ONCE A YEAR OR MAYBE NOW EVERY 6 MONTHS

DIVIDEND DATES
SEPT 08 2006 0.5893 –
APRIL 05 2006 0.6658
APRIL 29 2004 0.29
MAY 07 2003 0.136
MAY 07 2002 0.0512

According to this, it seems that they paid: $0.59 + $0.66 = $1.25 in 2006.

Since 1.25 is 5% of 25, I titled this post with 5% Yield. I have no Idea of how Yahoo came out with $3 dividend. I think they must be wrong.

What is also a bit strange is that September’s dividend is lower than April’s. I hope it does not mean they are lowering…

4. Sanity For Sale - March 21, 2007

well the reason you probably shouldnt is because the workers are probably being only paid 20 cents a day and also probably becuase they have got a gun/cow prod pointing at them…. the chinese economy is based on exploitation…check it out

http://sanityforsale.wordpress.com/2007/02/05/santas-workshop-inside-chinas-slave-labor-toy-factories/

5. deminvest - March 21, 2007

You are right. But what can we do about that?

1) We can stop buying China made products. But that would trigger depression which, in a still poor country, would bring starvation to hundreds of thousands.

2) We can do our best to help freedom fighters in China

3) We, the people, can take control of those Chinese corporations to make them better. In a very imperfect way, most US large corporations are owned by the people, unfortunately indirectly, trough our pension funds, trough our funds and our ETFs, but still this people ownership makes them better than they were 200 years ago when they did belong to few capitalists.

I think 2) and 3) are the best solutions.

What do you think?

6. Leonard Shulkin - May 18, 2007

China is the new internet bubble. 90% of the population shares their home with chickens. Yea, if fifty years it might, might be a viable place to invest — but it’s a greed magnet now.

7. deminvest - May 20, 2007

I totally disagree. China is already one of the largest economies in the world. Its companies have great earnings and excellent growth.

The fact that Chinese companies still have the opportunity to employ large masses of low wage excellent workers is just one more opportunity for them to contiue fast growth and amazing earnings.

Maybe it is not very ethical to invest in China today, but I think it is a very good deal.

8. RHW - August 14, 2008

With the plunge in China stocks over the past year, some really attractive deals are surfacing:

http://seekingalpha.com/article/90737-six-reasons-to-buy-china-soon

For instance: ACH hit 90, is now around 20, P/E around 7.

Happy Hunting!


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