With Dow ended around 12,099 today, some people are already saying that the market will hold around this level. If the bottom is near or maybe already here, then the next question is that which stock you should buy. According to Morningstar, Huanneng Power International Inc. (HNP) should be on the top of your list. It is the largest power producer in China, and has a privileged relationship with the Chinese government. China's thirst for power and energy will keep growing in the coming years as its economy keeps booming. The current power shortage will keep the demand outstrip supply for at least a few years. The risk lies in that the shortage of the coal supplies will continue worsen in the coming years. Morningstar predicts its 3-year expected annual return to be 33.9%. The stock ended at $26.08 today, close to its 52 weeks low, $24.00, making it a great bargain.
I took a look at its dividend history. It turns out that it pays a pretty good dividend as well, especially considering its growth prospect. Though caution should be made since the dividend history is only 5 years.
| Daily Price History | 2004 | 2005 | 2006 | 2007 | 2008 | ||
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| Dividend History | 12-03 | 12-04 | 12-05 | 12-06 | 12-07 | ||
| Dividend $ | 0.82 | 1.21 | 1.21 | 1.25 | |||
| Year-end Yield % | 2.37 | 4.02 | 4.61 | 3.47 | 3.51 | ||
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