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The Bubs Australia Ltd share price just rocketed 18% higher

The Bubs Australia Ltd (ASX: BUB) share price has continued to build on yesterday’s gain and is up 18% to 20 cents today.

This latest gain means the shares of this infant formula and baby food company have rallied over 42% in just the last five trading sessions.

Why has it rallied?

Yesterday the company announced that it has expanded its access to Chinese consumers with the signing of a strategic partnership with NetEase Kaola.com.

The online retail platform has an estimated 15 million active users, of which 42% have at some stage purchased baby products.

Whether or not this is the start of something big for Bubs, only time will tell.

But one thing that is certain, is that it will face significant competition in China from the likes of a2 Milk Company Ltd (Australia) (ASX: A2M) and Bellamy’s Australia Ltd (ASX: BAL).

A2 Milk recently upgraded its full-year guidance thanks to insatiable demand from Chinese consumers.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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