In keeping with my current strategy of utilizing a strong US dollar to my benefit, today Swire Pacific was added to my portfolio. Swire Pacific is 49% owned by privately held, London based John Swire & Son with the remaining 51% traded on the Hong Kong exchange under the ticker 0019 (a second class trades as 0087). The ADR corresponding to 0019 trades in the US as SWRAY. They are also one of Coca-Cola’s (KO) anchor bottlers under the 21st Century Beverage Partnership Model of KO’s that is expected to complete in 2017 with territory covering Hong Kong, the Chinese mainland, Taiwan and the western United States.
But Swire is much more than a Coca-Cola bottler. Last year they celebrated their 200th anniversary and are a conglomerate in a style similar to Warren Buffet. They own 45% of Cathay Pacific, have significant real estate holdings and refrigerated warehouse operations among their holdings. The Coca-Cola Bottler’s Association did a great article on their success.
Swire Pacific pays a dividend twice per year on an interim/final schedule. At today’s purchase price ($10.338), the dividend yield translates to roughly 4.77%. There is a risk of currency fluctuation as dividends are declared in HK$.
As an aside, I wonder how this company fits into Pres. Trump’s world view as a Chinese (HK) company that employs several thousand US workers – many on production lines?