Wednesday, April 08, 2015

2015 High Dividend Stocks in Singapore and Global! (Part 1)

It's time for the annual dividend stock list! For this year, we have included the global major markets in the universe to spice things up a little. We already know all the good Singapore names: SIA Engineering, CSE, M1. The value add and effort of using this screen to find another good gem in Singapore really doesn't pay off as well after years screening and more years of research. So we cast a wider net and look at global names. Now, the world is our oyster!

2015 High Dividend Stocks (1-19)

First let's look at the Singapore names again. There will always been some obscure names. The diligent ones who have the bandwidth can really go study each and every one. For this list, we see UMS, TIH etc. Frankly I have not the slightest idea what they do. It could be very interesting, so readers here if you find out, do report back! For this set of names (more to come, this screen has a total of over 60 names), sadly, there is nothing new for me. The names that we know well have been studied and discussed. SIA Engineering remains one of the top favourites. The stock fell 15% in the last 12 months, yield is now 5% but it is also still not cheap at 20x PE. This reflects the high quality of the firm. The concern last year was that it was losing business as airplanes are now better equipped with efficient engines, requiring less maintenance. There was also some impact with Ebola and the tragic crashes of various airlines and firm specific issues of losing some orders. But the long term outlook remains intact. More LCCs, more airplanes flying, hence more maintenance. Singapore will see T4 and then T5. We are not slowing down. So just keep buying if it corrects and collect the 5% dividend  along the way. 

2015 High Dividend Stocks (20-38)

The next batch of names look more interesting. Again we know the Singapore ones all too well. SATS, SPH, Singtel, Starhub. My top pick would be SATS, with the similar angle that they would benefit with the opening of T4 and T5. Their Japan business could also turn around finally now that inbound tourism to Japan is becoming a big thing! Singtel is the stalwark, slow and steady but it charged 20% in the last 12 months and now hit $4.3. I would wait for it to correct back to $3 plus to add more. I have held this stock since it was $1 plus and collected a decade of dividends. That would be the kind of investing I advocate for all the readers here.

The two interesting global names here are Garmin and National Oilwell Varco or NOV. I know very little about these two but a first cut definitely looks promising. Garmin is a mapping and technology firm building its brand in wearables, sports related gadgets and GPS related applications. It is a very important niche and one that is not easily replicated. Remember Apple's map follies when it first launched that landed people in the middle of nowhere, out of gas and food? It's no joke. But heard they have improved. Google is the biggest competitor, but Garmin being just focused on maps might help. Anyways, definitely need more work.

NOV is an interesting one. Nobody remembers what it really stood for. Ok, I gave the full name above. But in the industry, it's known as No Other Vendor, as a joke. They are that powerful. As a client, you have no other vendor, it's NOV. You have to use their products to drill oil on land, sea, deep sea, ice etc. It's now interesting as it collapsed with the rest of the oil industry, alongside our Keppel and Sembmarine. So maybe good to do more research.

That's a start for these year's series of dividend posts. More to come! Stay tuned!

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