Secret Asian Cash Cows:
Three High-Yield Stocks Western Investors Are Missing Out On

If you've picked up a newspaper or watched more than a minute of business news over the past two years, you're probably familiar with the biggest theme in global economics these days: the huge boom in China and India.

Globalization, freer trade and a hunger for lower-cost labor have led to rapid economic growth in China and India for most of this decade. Both countries have grown at double-digit rates -- China's gross domestic product (GDP) rose about +11% in 2007 and is expect to clock in around +10% 2008; India's economy rose between +9-10% in 2007 and should see growth of about +8% in the 2008.

We're all in favor of getting excited about growth prospects in these countries, because the potential is real -- and the growth probably will continue for years, if not decades. But there's a problem. For those of us in search of high yields, China and India can be a virtual desert. Most companies there pay little or no dividends; they're too busy churning excess cash into their own businesses or acquisition of other ones, striving to grow to keep up with the surging economy.

So how can income investors take advantage of the unprecedented, historic growth in these huge countries? Simple: By looking to surrounding countries, where dividend-paying companies are basking in the overall economic glow.

Not surprisingly, stocks in these regions have enjoyed strong gains in recent years. The table below tells the tale; it includes the five-year returns for the main stock index in a few selected countries -- but the same story applies to most of Asia.

The fact is that, by and large, all of Asia is enjoying an economic boom -- thanks in no small measure to what's happening in China and India. As their economies grow, so does trade with their neighbors.

This leads to increased demand for the exports offered by neighboring countries -- a positive stimulus for their growth. Of course, this increased export activity then works its way throughout the rest of the country, furthering its effect and benefiting businesses on a nationwide scale.

And while many Chinese and Indian companies may not be chock full of dividend stalwarts, many surrounding countries are. With their country's economic progress, these dividend-paying firms are seeing more cash and higher profits than ever. In turn, they are oftentimes creating value for shareholders by paying out more and larger dividends.

We found a couple of firms that are raising their dividends. Since these firms operate on the other side of the world from the United States, they are relatively overlooked by most investors. However, with their impressive yields and history of increasing dividends, you would be wise to investigate them further...