Wednesday, September 01, 2010

High Dividend Stocks

An updated post "High Dividend Stocks 2011" is finally out! Do check it out.

Here is a list of stocks that I generated using the following criteria

1. Market cap more than $50mn
2. Dividend yield more than 4%
3. Past 3 yr average ROE more than 9%
4. Past 3 yr FCF yield more than 7%
5. Past 3 yr EBIT margin more than 4%

Obviously, as with all quant screens, more work needs to be done to refine the results. The first counter definitely look strange. I mean, with dividend of 30%, in 3 yrs you get back your capital. How likely is that?

Chances are something is wrong with the firm or with the data.

The name that I thought might be interesting is Telechoice - which sells prepaid phonecards. With the immigration floodgate opening again, it might see some profit boost in the next few years.

The other safe and well-known dividend names like M1, Starhub, SATS etc, well should always try to buy more of these if you believe in the Singapore story.

Well a small gift to all the teachers reading this blog today!