Looking for security – and high dividends? Check out SouFun Holdings

With Chinese accounting scandals back in the news , emerging market investors are looking for security. Real estate internet and home furnishings portal SouFun Holdings ( SFUN , quote ) offers security plus a few other good reasons to invest.

SouFun as a real estate play: safe as houses?

SouFun Holdings offers marketing, listing and other services and products for China's real estate and home furnishing and improvement sectors, and as such is a play on China's fast growing middle class.

Paying responsible dividends is one of the best indicators of an honest company , and SouFun Holdings has a dividend yield of 11.09%. That compares extremely favorably with the average 2% dividend yield for a stock on the S&P 500 Index ( SPY , quote ).

SouFun's other financials are equally attractive. It has a healthy profit margin of 29.55%, and an unusually strong return-on-investment of 77.18%. Institutional investors own almost 40% of the company's shares, an indication of confidence on their part.

SFUN has a high level of debt, but that's not necessarily bad news. It indicates the company has been vetted by local lenders, who can do more due diligence than an investor thousands of miles away. It's telling that many Chinese companies proven to be fraudulent had no debt at all.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

See the article here:
Looking for security – and high dividends? Check out SouFun Holdings

Related Posts

Comments are closed.