Three dividend stocks from the dynamic Asia/Pacific region
Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
The words “Asia” and “growth” have been intertwined for decades. Asia is the fastest-growing region in the world and over the last decade its companies have grown profits at a faster pace than any other region’s. However, it is still surprising that the growth and resilience of dividends in Asia is not celebrated in the same way. The performance of dividends in Asia has been nothing short of spectacular.
Over the last decade dividends in Asia have grown faster than the global average; South Korea’s, for example, were more than three times larger in 2020 than in 2010. Asian payouts are also highly resilient. Regional dividends fell by less than 6% in 2020. This is an incredible outcome in a year where global pre-tax profits slumped by 23%, compared with only 4% in Asia. Ignoring income in Asia is to ignore the most exciting region globally for potential upside in dividends.
A 52-year streak
Dividend-paying companies don’t have to be boring. The region boasts an abundance of exciting growth-business models with high and rising dividends. A prime example is Australia’s Macquarie Group (Sydney: MQG), an investment bank and financial-services group. It is uniquely placed to capture growth opportunities in many of the investment buzzwords of today: infrastructure, commodities, renewables, and technology.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
It has a strong record and maintains a high level of recurring income from a leading asset-management business, enabling it to grow dividends. Management is highly regarded, with 52 years of unbroken profitability and over 200% total shareholder return over the last five years. With a strong surplus capital position and focus on green energy projects, we believe there is plenty more left in the tank.
Thinking outside the box
Asia offers some exciting investment themes but not all of them pay dividends, so lateral thinking is sometimes required. The growth of e-commerce in Asia is one such theme, but how do income investors take advantage of a sector without payouts?
We believe the answer is Mapletree Logistics Trust (Singapore: M44U), listed in Singapore. It’s an Asia-focused logistics real-estate investment trust (Reit) that owns high-quality warehousing facilities crucial to e-commerce players. It boasts high occupancy, reasonable gearing levels and low interest-rate costs, which enable it to pay a 4% dividend yield and enjoy long-term dividend-per-share (DPS) growth. The diversification across eight attractive Asian markets, including India, Vietnam and Singapore, is also particularly appealing.
Don’t ignore the boring companies
Holding companies can go unnoticed as sources of income growth, but their listed subsidiaries certainly turn heads. More lateral thinking is required to capture exposure to fast-growing technology companies, but it must be supported by valuations and yield. The solution is LG Corp (Seoul: 003550), listed in South Korea. It trades at a 60% discount to net asset value despite its listed subsidiaries performing well, and owns stakes in some of the leading technology assets in the country, such as LG Chem, one of the world’s top electric-vehicle battery producers. Following a group restructuring, and with dividend per share growth rising, the best may be yet to come.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Sat Duhra is co-manager of the Henderson Far East Income investment trust
-
8 of the best properties for sale with kitchen gardens
The best properties for sale with kitchen gardens – from a 17th-century timber-framed hall house in Norfolk, to an Arts & Crafts house in West Sussex designed by Charles Voysey with a garden by Gertrude Jekyll
-
Why you should start investing early
Most investors wish they had started earlier, and data shows that starting to invest sooner yields greater results over time
-
8 of the best properties for sale with kitchen gardens
The best properties for sale with kitchen gardens – from a 17th-century timber-framed hall house in Norfolk, to an Arts & Crafts house in West Sussex designed by Charles Voysey with a garden by Gertrude Jekyll
-
Why investors can no longer trust traditional statistical indicators
Opinion The statistical indicators and data investors have relied on for decades are no longer fit for purpose. It's time to move on, says Helen Thomas
-
Investors rediscover the virtue of value investing over growth
Growth investing, betting on rapidly expanding companies, has proved successful since 2008. But now the other main investment style seems to be coming back into fashion.
-
8 of the best properties for sale with shooting estates
The best properties for sale with shooting estates – from an estate in a designated Dark Sky area in Ayrshire, Scotland, to a hunting estate in Tuscany with a wild boar, mouflon, deer and hare shoot
-
The most likely outcome of the AI boom is a big fall
Opinion Like the dotcom boom of the late 1990s, AI is not paying off – despite huge investments being made in the hope of creating AI-based wealth
-
What we can learn from Britain’s "Dashing Dozen" stocks
Stocks that consistently outperform the market are clearly doing something right. What can we learn from the UK's top performers and which ones are still buys?
-
The rise of Robin Zeng: China’s billionaire battery king
Robin Zeng, a pioneer in EV batteries, is vying with Li Ka-shing for the title of Hong Kong’s richest person. He is typical of a new kind of tycoon in China
-
Europe’s forgotten equities offer value, growth and strong cash flows
Opinion Jonathon Regis, co-portfolio manager, Developed Markets UCITS Strategy, Lansdowne Partners, highlights forgotten equities he'd put his money in