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4 High-Yielding Safe Haven Infrastructure Stocks

With the first known case in December of 2019, the death toll from the Wuhan coronavirus now stands at over 500. To contain the spread, the Chinese government has quarantined millions of people while institutions around the world have spent enormous resources to develop a vaccine or cure.

As a precaution, however, some investors have sold off some of their holdings until the economic fallout of Wuhan coronavirus is more clear. If the news gets worse, “safe haven” stocks could be more in demand.

Although even “safe haven” stocks could fall sharply if things get really bad, many infrastructure stocks are safer than many stocks in other sectors. Due to their essential nature, the cash flows of many infrastructure stocks don’t change all that much in the short term.

Here are four high-yielding infrastructure stocks to consider amid the current market uncertainty.

1. Guangdong Investment

Guangdong Investment Ltd (SEHK: 270) is a diversified conglomerate with a considerable water resources division that covers sewage treatment, water distribution and waterworks construction in China. Through investment, the company also supplies natural water to Hong Kong.

In addition to its water resources business, Guangdong Investment has a property investment and development business as well as investments in infrastructure projects that comprise of road, bridges, and energy projects.

According to Yahoo Finance, Guangdong Investment has a forward dividend yield of around 3.3% at current prices.

2. CLP Holdings Limited

CLP Holdings Limited (SEHK: 2) is one of the leading energy suppliers in Hong Kong. Through the company’s generation and transmission assets, CLP supplies electricity to around 80% of the city’s population.

CLP Holdings is also somewhat geographically diversified. As of 30 June 2019, CLP Holdings had around 2.62 million accounts in Hong Kong and 2.5 million in Australia.

According to Yahoo Finance, CLP Holdings has a forward dividend yield of around 3.06% at current prices.

3. HK Electric Investments

HK Electric Investments Ltd (SEHK: 2638) is a vertically integrated power utility that provides reliable electricity to over 570,000 residential and commercial customers on Lamma Island and Hong Kong Island.

The stock has a forward dividend yield of around 4.55% at current prices. Because it supplies an essential service, shares of HK Electric haven’t fallen much since the Hang Seng Index hit a short-term high on 17 January.

Since that day to the beginning of the Chinese New Year, HK Electric Investments has fallen by just 1%.

4. Power Assets

Power Assets Holdings Ltd (SEHK: 6) is one of the more global infrastructure stocks on the Hong Kong market today. Through various investments, the company has energy or utility investments across the world including in countries such as the UK, Australia, Hong Kong, and Canada.

Because it is more global than comparable Greater-China-only utilities, Power Assets Holdings is potentially less affected by the economic fallout caused by the Wuhan Coronavirus unless the virus goes global.

Power Assets has a forward dividend yield of around 4.87% at current prices.

Foolish conclusion

Many leading infrastructure stocks offer both a degree of safety and attractive yield in times of trouble. They could potentially be worthy investments if the Wuhan coronavirus outbreak gets worse.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Hong Kong contributor Jay Yao doesn't own shares in any companies mentioned.