Thursday, January 18, 2024

2024 Dividend List - SGX

The start of the year brings fresh aspiration, perspectives and ideas. This year, we start early with the dividend list using Poems' screener. It is quite basic but allows us to screen using ROE, ROA, Dividend along with the usual market cap and valuation cut-offs. So we tried the following:
  • Market cap > SGD 500m
  • ROE > 10%
  • ROA > 4%
  • Dividend Yield > 3% 
  • PE < 25x
As we know, the Singapore Government 6 month Treasury Bills currently gives us 3.7%. So to be buying for dividends, we would actually require a much higher yield (perhaps 5% or more), otherwise we should just buy T-bills right? However, with high yielding stocks, if they are not generating high enough returns (which is why ROE is important), they are basically paying out their equity base. One of the stocks we discussed actually exhibited this:

Overseas Education pays a 7-9% dividend over the past years, but as there was no growth (revenue did not grow and ROE was only 3-4%), the stock price simply falls by that amount annually as exemplified by the share price chart above. But anyways, that's enough digression. Let's look at the list (sorted by market cap) today:

The first section of the list shows the blue chip names and we have Thai Beverage and SGX discussed in depth on our platforms. It is also interesting to note that most names are trading at teens PE which alludes to the cheapness we see in the Singapore market today. As for other noteworthy names, Raffles Medical is definitely on the cards.

The second portion of the list shows names going down the market cap ranking quickly. Since we cut it off at SGD500m, the last name appears to be Vicom, which is also discussed on this platform. If we remove that filter, we can another 57 names with the last name at just SGD6m market cap. Well, these are not primarily our concern. The interesting names that popped up are the watch distributors Hour Glass and Cortina, with double digit ROAs and trading at single digits PE and give close to 5% dividend, they are worth studying!

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