China Merchants Port Holdings: Market leader with impressive return

China Merchants Port Holdings: Market leader with impressive return

Passive investing in index fund can achieve returns that correspond approximately to the overall market. Investors who are interested in companies whose stocks exceed the market can achieve potentially higher yields. The China Merchants Port Holdings Company Limited (HKG: 144) last year rose by 22%, which significantly exceeds the market decline of around 10% (without dividends). This is a positive development that contributes a lot to the fact that investors could do well if this growth continues in the long term.

However, the long -term income is less impressive because the share has only increased by 4.0% in the past three years. In view of a decline of 4.0% last week, it should now be examined in more detail whether the company's fundamental data of the company was actually responsible for the positive return last year.

dividends and total yield of shareholders

When analyzing investment sectors, it is important to take the difference between the overall return of the shareholders (TSR) and the price return . The TSR also includes the value of possible splitting or capital increases as well as any dividends, provided that they are reinvested. For the China Merchants Port Holdings, the TSR is remarkable 30%last year, which is better than the price return mentioned above. This deviation can mainly be attributed to the dividend payments.

We look forward to the fact that the remuneration of the CEO is more moderate compared to other similar companies. While it is important to keep an eye on the salaries of the managers, an even more crucial question is whether the company is able to grow continuously over the years.

a different perspective on the business

The overall return of shareholders at China Merchants Port Holdings is 30%over a year, including dividends. This return exceeds the annualized return of 7% over a period of five years, which points out that the company has been developing better recently. This snapshot suggests that there may be real business growth and this could be the right time to take a closer look at the company.