Friday, June 14, 2013

2013 High Dividend Stocks in Singapore - Part 2

This is a continuation of a previous post on dividends.

Finally, here is the long awaited part 2 of the list of high dividend stocks listed on Singapore's SGX.

The criteria/factors used to screen these names have not change much over the years. Although I did tweak the numbers eg. the cut off for dividend in the past could be 4-5% but now it's 3.5% bcos you won't find enough names using 4-5% dividend. If you study the previous lists carefully, you would also notice that about 20-30% of the names would be the same but their dividend yield should have gone down (ie prices have gone up). Having said that, being on the list too many times may not be a good thing, bcos it means the stock didn't do much over the past few years.

Here's the real kicker bonus: a not insignificant portion of the old names rallied way too much and hence dropped out. Some got taken out like Cerebos and Adampak. Now, we are talking about multiple baggers. That's where the real money was made! Of course there are also duds like Raffles Education, which I have warned could have serious issues. So again, this list is always just a starting point.

These are the factors used this time round. It is interesting to note that about half the names drop off after every criteria. From a start of 366 names, only 28 names remained.

This second half of names, in my opinion, contain some of the best run companies in Singapore. Veteran investors looking at Singapore stocks for some time would probably agree, mid caps like Sarin, Boardroom, CSE Global, Boustead are really companies run by some of the most competent business managers Singapore has seen. They have done us proud. Ok, one is an Israeli co. and the other is run by an angmo but never mind, they are listed on SGX and that's what counts! My favourite though, has always been Sembcorp Marine. Together with Keppel Corp, these two companies conquered the world of oil rigs with 60% worldwide market share. In no other industry does our small little red dot have such dominance in the global arena.

We are so good that Brazil, a country that is like 50x bigger, entrusted some of their most important national oil exploration projects to Sembcorp and Keppel. It is a strong vote of confidence in the capabilities of some of our finest. Every Singaporean should feel proud of Sembcorp and Keppel. Sembcorp Marine is also building the first world's largest dock capable of repairing and maintaining mega containerships and oil tankers. While the co. is now going through a bad patch with its rig tilting incident last year, I believe things would turn. The world is running out of oil and gas and it needs to keep exploring and drilling in deeper and deeper waters. That's playing to our rigbuilders' strengths.

Investing in some of these great Singapore co.s just adds so much more to the fun. It's like owning a piece of our heritage and feeling good and proud about it. Not to mention receiving the all important dividend every payable date. That's la vie est belle!

Again here is the past lists:
2013 Dividend List - Part 1
2012 Dividend List
2011 Dividend List
2010 Dividend List
2009 Dividend List

Disclaimer: this blogger owns Sembcorp Marine.


  1. Sembcorp and Keppel are both in the sweet spot of a huge global trend - offshore exploration!