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John Murphy
Is China Mobile the Balance to Apple and Microsoft?
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As previous articles on this site have detailed, there is much to like about Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT).  Both are great companies.  Due to this and the bull market, both Microsoft and Apple are up sharply.

Investors should also consider China Mobile (NYSE: CHL), the world’s largest mobile phone company.

Like Apple and Microsoft, China Mobile has done well too in the bull market.  It is up for the last month, quarter, six months, and year of market action. For 2014, China Mobile has risen by just over 6 percent (chart below).

It is also a very profitable stock.

The profit margin for China Mobile is 39.70 percent.  For Microsoft, the profit margin is 25.40%.  Apple has a profit margin of 21.60 percent.

China Mobile is also strong in sharing those profits with its shareholders in the form of dividend payments.

China Mobile has a dividend yield of 3.46 percent.  The dividend yield for Microsoft comes in at 2.62 percent.  Apple has a dividend yield of 1.98 percent. As with Microsoft and Apple, China Mobile has plenty of cash to finance its dividend.

Best of all, China Mobile is positioned well to profit from growth in Asia and other emerging markets.

The high end iPhone has a very narrow audience.  China Mobile has many offerings for consumers at all levels.  That gives it a substantial advantage of Apple.  China Mobile also has a partnership with Apple, so it will do well from the new iPhone 6 coming out early next month.

Like Apple and Microsoft, China Mobile also carries a low level of debt.

All of those factors add up to what should be a solid long term return for China Mobile.   It is a low beta stock, so that adds a solid foundation to any portfolio.  The high dividend yield pays for investors to stay with the stock for the long haul!





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