China Growth Stocks

[RyanW439]

Then they need to buy more land, hire more people, buy more equipment, etc.. Expansion, no matter what industry, takes capital. If they can continue expansion and pay a dividend, then more power to them, and I wouldn't be opposed to it. However, if they then have to do a stock offering to buy land or equipment a few months later, then the dividend would be a faulty move.

I think of most of these companies as high growth companies... Typically, you don't see high growth companies pay dividends, as retained earnings help them expand without diluting shareholders, or at least minimizing dilution. If they can pay a dividend and still expand rapidly, then I'm all for it.. I'm talking more general than this company specifically, but the idea is the same for most. There just aren't very many small companies that can do both with no problems..