For a trader, winning is extremly dangerous if you haven't learned how to monitor and control yourself.

The Secret Recipe: Trading Success = Winning Trading System - U


Wednesday, February 5, 2014

Yield Play

As stocks have been selling off and STI hit its 52 weeks low yesterday. It's time to look at some of the "falling angels" for dividend yield play. As we know, for those companies paying dividend consistently in a growth manner, the lower its stock price, the higher will be its dividend yield thus more attractive to buy.

Below data quoted from AmFraser's recent analyst report.
List of REITs and Trust in Singapore(click picture to enlarge):
Yield Comparison(click picture to enlarge):

Given that possible interest rate rise on QE tapering, we need to carefully select those stocks that will be least affected by rising interest rate. Gearing ratio which indicates the company's debt leverage level is one of the factor to check the company's risk exposure. Below chart compares the Gearing ratio for yield play stocks. Stocks on right hand side is preferred.
Recommendation of Plays:

No comments: