Friday, January 06, 2012

2012 High Dividend Stocks in Singapore

I have cleaned up the screen in the last post and this is the newest list of co.s with more or less the same criteria:

1. Market cap more than $100mn
2. Dividend yield more than 4%
3. Past 3 yr average ROE more than 12%
4. Past 3 yr FCF yield more than 6%
5. Past 3 yr EBIT margin more than 10%


There are 2 more co.s: Silverlake Axis and Super Group which is not shown due to the screen size of Bloomberg. So this round produces 34 names in all. Well 33 to be exact bcos Singtel is counted twice.

I have tighten the EBIT margin to reflect that a strong co. should at least have 10% margin but loosen on the FCF from 7% to 6%.

To me, this tighter list will weed out some more of those bombs that usually come with generated quant screens.

Again, pls do more homework on these names bcos the qualitative analysis is always much more important than just churning out names using some value factors.

As for the four names mentioned previously, Adampak drops off from this list due to the market cap criteria change (from SGD50m to 100m) while Viz Branz, SATS and Boustead are still here.

I would add that Super Group is also in a good business (same as Viz) with different geographical exposure (ASEAN) but slightly more expensive and a lower dividend yield (4% only).

Finally here's wishing everybody a happy 2012! Hopefully a war doesn't break out in Iran or North Korea this year!
Post a Comment