Friday, December 30, 2016

Jan[1] - Yield Hunting

Among STI constituents, following counters were trading at dividend yield > 4%. Due to entry of 4th telco, Singtel has been trading at its lower zone based on price movement in past four years. Its reportedly $2.5b IPO plan could be price catalyst on 2017. Recent oil price recovery improved market sentiment towards banks. OCBC is trading at highest yield among its peers meanwhile. New acquisition from Barclays could be earning catalyst in future.

Among REITs (dividend yield > 5.5%), following counters were shortlisted because of their lower liabilities and high interest coverage. CapitaMall Trust has advantage in location of its local retail assets. IPO debut on 2016, Frasers Logistics & Industrial Trust is proxy to growing demand for industrial space in Australia.

Recent bullish USD defeated gold, thus gold miner, CNMC Goldmine was facing down selling headwind. The counter is raising production margin to offset downward pressure of gold price. With little debt (<1% gearing), it offers consistent payout of dividend in the past. Current price translates to ~2% yield. CNMC closely tracking gold price movement, so it could be star performer in one's portfolio, especially when stock market is in panic selling condition (eg. Brexit and pre-US election this year). Further information can be referred to Nov[3] in 2016.

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