Huaneng Power (HNP): Income from China

"Sure, China is slowing down along with the rest of the global economy; but it’s still growing faster than everyone else," says Mark Skousen. 

In his specialized service, High Income Alert, he looks to Huaneng Power (NYSE: HNP), "This power product is an excellent, recession-resistant China play. And we’ll be collecting a 6.5% dividend too."

"China's Premier Wen Jiabao’s goal is 8% annual growth. He may not achieve it. But the outlook for certain industries -- especially utilities -- remains robust. 

"That’s why you should buy a few shares of Huaneng Power, one of the largest power producers in China.

"Last year, Huaneng increased domestic power generation 6.3%. And last month, it announced it received approval for two new 300 megawatt units at its Yingkou plant.

"With plants in Shanghai and Chongqing municipalities, as well as Lianoning, Hebei, Shanxi, Shandong, Henan, Fujian, Jiangsu, Zhejiang, Guangdong, Jiangxi, Gansu and Hunang provinces, its capacity exceeds 36,000 megawatts.

"Huaneng has been growing rapidly for years through acquisitions. Now, it also is taking the lead on forays into new clean-coal and nuclear power technologies.

"This is important. China is now the largest emitter of carbon dioxide in the world. Its factories, cities and enormous demand for natural resources have taken a severe toll on the country -- tainting the environment.

"But Huaneng is at work meeting China’s tremendous thirst for energy and building the country’s first zero-emissions coal-fired power plants.

"It is true that the company was hit by higher raw material costs in 2008. But Huaneng is a solid company. Over the last 52 weeks, Huaneng has fallen just 11% vs. 47% for the S&P 500. Moreover, its fuel costs will be lower this year.

"With domestic demand for power growing -- tens of thousands of Chinese still are moving to urban areas every day -- this is an excellent, recession-resistant China play. And we’ll be collecting a 6.5% dividend here, too."