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China’s pearl river Delta region (PRD) is a growing economic powerhouse in its own right, and investors should pay attention. 

In 1970, Shenzhen was nothing more than a fishing village. Today it is called the “New Silicon valley”. Its economic growth surpassed Hong Kong’s in 2018, with growth of 7% year-on-year. And Shenzhen is not alone. Neighboring Guangzhou is now expected to surpass Hong Kong’s GDP within a few years. 

This has created an opportunity for investors as the pearl river Delta becomes home to several large companies and new consumers. What’s more, the region is home to a strong push by mainland Chinese authorities for a “Greater Bay Area” initiative in the PRD. Best of all, many of the companies in PRD pay hefty dividends and stand to grow alongside emerging markets. 

Investing in these companies can help investors build wealth in the long run. It is in this spirit that I have selected two of the largest and best dividend payers of the pearl river Delta. These companies already command large shares of their markets and may continue to increase their payouts in the future.

China Mobile Ltd (NYSE: CHL) is likely to play a major role in China’s upcoming 5G revolution, making it a great buy for investors looking to cash in on the 5G super trend. It offers semi-annual dividend payments and currently yields around 4.6%. It is also a composite stock of Hong Kong’s benchmark, the Hang Seng index (HSI).

Headquartered in Hong Kong, China Mobile provides a wide range of services including information and communications technology, data and fixed broadband. It will benefit from the expansion and development of the Internet of things (IoT) and 5G, which will require more data. 

China Mobile also plans to begin commercial rollout of 5G in 2020, which will lead to new revenue streams as Chinese customers upgrade from 4G capabilities. 

Guangzhou Automobile Group Ltd (GAG) (SEHK:2238) is a major automobile manufacturer based in Guangzhou, China. The company pays a dividend yield of 4.8% and has a nine-year payout history. Over the past five years, GAG has grown at a 33% annual rate per share. 

The company has ramped up car production heading into 2020, targeting China’s growing middle class and thirst for SUVs. The company has had some domestic success with its Trumpchi SUV, which accounts for 10% of the company’s sales. 

And GAG is not only targeting the Chinese market. The company has established joint ventures with Honda, Toyota Motor, Izuzu Motors in Japan and Fiat Chrysler Automobiles in the United States. 

Investing in companies that pay dividends is a great way to generate income beyond stock profits. Companies that are likely to continue paying dividends will have strong financial performance and growth potential. Both China Mobile and GAG offer this to investors. 

As a potential 5g leader, China Mobile can offer investors both growth opportunities and stable dividends. Guangzhou Automobile is also able to offer consistent dividends given its strong net cash balance.

A version of this article originally appeared on our Fool Asia website. For more coverage like this head to Fool.hk.en.