Why The Hong Kong and China Gas Company Limited (HKG:3) Could Have A Place In Your Portfolio

I’ve been keeping an eye on The Hong Kong and China Gas Company Limited (HKG:3) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 3 has a lot to offer. Basically, it is a notable dividend payer with a a great history of delivering benchmark-beating performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Hong Kong and China Gas here.

Solid track record average dividend payer

3 delivered a bottom-line expansion of 13% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 3 outperformed its past performance, its growth also exceeded the Gas Utilities industry expansion, which generated a 11% earnings growth. This is an optimistic signal for the future.

SEHK:3 Income Statement, April 17th 2019
SEHK:3 Income Statement, April 17th 2019

For those seeking income streams from their portfolio, 3 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.9%.

SEHK:3 Historical Dividend Yield, April 17th 2019
SEHK:3 Historical Dividend Yield, April 17th 2019

Next Steps:

For Hong Kong and China Gas, there are three key aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 3’s future growth? Take a look at our free research report of analyst consensus for 3’s outlook.
  2. Financial Health: Are 3’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3? 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.