China Telecom Corporation Limited (HKG:728) Has Attractive Fundamentals

Attractive stocks have exceptional fundamentals. In the case of China Telecom Corporation Limited (HKG:728), there's is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on China Telecom here.

Established dividend payer with adequate balance sheet

728’s debt-to-equity ratio stands at 22%, which means its debt level is reasonable. This means that 728’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. 728's has produced operating cash levels of 1.33x total debt over the past year, which implies that 728's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

Income investors would also be happy to know that 728 is a great dividend company, with a current yield standing at 3.3%. 728 has also been regularly increasing its dividend payments to shareholders over the past decade.

Next Steps:

For China Telecom, I've compiled three fundamental factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for 728’s future growth? Take a look at our free research report of analyst consensus for 728’s outlook.
2. Historical Performance: What has 728's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 728? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.