High Dividend Yield Stocks
Before we go into the content, let's look into what the title means. Dividend is a payout that rewards you for holding a share of the company. It is similar to the interest on your bank savings. The difference is that the company can choose not to give any dividend for the year.
The yield on the dividend, is the dividend divided the share price, for instance, a company's share is selling at $2.00, and dividend declared is $0.01 per share, which means the yield is 0.01/2 = 5%.
Is dividend yield important? Of course, that equates to your return on investment. Still don't understand? Imagine now that you hold Company A's stock that costs $4.00 per share compared to Jacky who holds Company Z's stock that costs $2.00. We have the same capital, which means that for every stock you hold, Jacky holds 2 times as much. So when Company A and Z both declare a dividend of 1cent per share, who would be happier? If you still don't understand, I suggest you go back to sleep now.
Ok back to serious business. This week, a number of companies announced earnings for the last financial year, which is also the time they propose dividends to be distributed to shareholders. On average, Singapore listed companies generally yield about 2% on dividend and 4% or more is considered generous.
So, take a look at the latest companies that are cum dividend (CD) currently, computed based on the amount declared for this period. Prices of stock fluctuate, so the denominator is not accurate. Therefore, dividend yield isaccurate to not very accurate.
United Engineers - 4.5%
Sembcorp - 4.1%
Parkway Holdings - 4%
CSE Global - 4%
Rotary Engineering - 3.8%
Allgreen Properties - 3.6%
ST Engineering - 3.3%
SembMarine - 2.9%
UOL - 2.5%
Haw Par Group - 2.5%
Hong Leong Finance - 2%
Sing Holdings - 1.8%
ComfortDelgro - 1.8%
Golden Agri - 0.93%
SC Global - 0.85%
City Developments - 0.78%
Take note: Dividend yield computed is based on the most recent report, which may be dividends declared for the quarter, and may NOT be the dividend yield for the entire year, because I am not so free to find the data and I don't hold a dividend paying stock for so long. Call me myopic.
Important: Please do not take this as a stock recommendation. Life doesn't work based on one factor. Even when using dividend yield, you must also know when is the CD and XD dates and the effect on stock prices on these two crucial dates. More will be shared after you have lost money. Good luck and have fun.
Before we go into the content, let's look into what the title means. Dividend is a payout that rewards you for holding a share of the company. It is similar to the interest on your bank savings. The difference is that the company can choose not to give any dividend for the year.
The yield on the dividend, is the dividend divided the share price, for instance, a company's share is selling at $2.00, and dividend declared is $0.01 per share, which means the yield is 0.01/2 = 5%.
Is dividend yield important? Of course, that equates to your return on investment. Still don't understand? Imagine now that you hold Company A's stock that costs $4.00 per share compared to Jacky who holds Company Z's stock that costs $2.00. We have the same capital, which means that for every stock you hold, Jacky holds 2 times as much. So when Company A and Z both declare a dividend of 1cent per share, who would be happier? If you still don't understand, I suggest you go back to sleep now.
Ok back to serious business. This week, a number of companies announced earnings for the last financial year, which is also the time they propose dividends to be distributed to shareholders. On average, Singapore listed companies generally yield about 2% on dividend and 4% or more is considered generous.
So, take a look at the latest companies that are cum dividend (CD) currently, computed based on the amount declared for this period. Prices of stock fluctuate, so the denominator is not accurate. Therefore, dividend yield is
United Engineers - 4.5%
Sembcorp - 4.1%
Parkway Holdings - 4%
CSE Global - 4%
Rotary Engineering - 3.8%
Allgreen Properties - 3.6%
ST Engineering - 3.3%
SembMarine - 2.9%
UOL - 2.5%
Haw Par Group - 2.5%
Hong Leong Finance - 2%
Sing Holdings - 1.8%
ComfortDelgro - 1.8%
Golden Agri - 0.93%
SC Global - 0.85%
City Developments - 0.78%
Take note: Dividend yield computed is based on the most recent report, which may be dividends declared for the quarter, and may NOT be the dividend yield for the entire year, because I am not so free to find the data and I don't hold a dividend paying stock for so long. Call me myopic.
Important: Please do not take this as a stock recommendation. Life doesn't work based on one factor. Even when using dividend yield, you must also know when is the CD and XD dates and the effect on stock prices on these two crucial dates. More will be shared after you have lost money. Good luck and have fun.
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