Read? Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips (5)
SembCorp Ind cuts its final dividend from last year $0.04 to $0.02. Total dividend = $0.05
Over the last 17 years as Dividend "Warrior" or "Lover" or "Patient"???
The lowest dividend yield on investment cost is still at the time of purchase through out the past economics and market cycles.
Kep Corp (2001/2002) : 11.4%
SemCorp Ind: (2002) : 6.1%
DBS: (2003) : 3.5%
Uncle8888 believes in himself that is BOTH market timing and time in the market are NOT mutually exclusive and are indeed important as long
Always look at dividend yield and dividend payout ratio as a pair!
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Unlocks value with targeted utilities divestments of up to S$0.5 billion and proposed IPO of India energy business
ReplyDeleteTo build a platform for growth and sustainability of its India energy business, the company today announced that it has initiated the process for an initial public offering of Sembcorp Energy India Limited on BSE Limited and the National Stock Exchange of India, with the filing of a draft red herring prospectus.
Following the review of its Utilities business, the Group is planning to divest a number of peripheral utilities assets. Over the next two years, this is expected to deliver estimated cash proceeds of up to S$0.5 billion. This is additional to potential proceeds from the proposed IPO of Sembcorp Energy India Limited. The company also announced that it had entered into a conditional agreement to divest its municipal water operations in South Africa, as part of its geographical repositioning. The Group’s focus on active and systematic capital recycling will enable it to strengthen its balance sheet and deliver sustainable growth.
Look closely at the yield table from left to right and what did you realize?
ReplyDeleteI find looking from top to bottom also interesting. ;)
DeleteFor buy-to-hold stocks, importance of:
1. Entry price i.e. relative historical valuation
2. Long term history of dividends (preferably increasing) and/or increasing free cash flow
3. Very strong balance sheet so company can survive long stretches of bad economy ... less analyzing more investing people can just select the top 10 largest companies in STI ... or just buy STI ETF for no brains required :)
Hardest is #1 coz it involves patience (may be years of doing nothing) & when time comes to buy, will be when prospects are at their worse ... own job may also be at risk of down-sizing.
Once in lifetime yield of dreams strategy will need to have patient buildup of large warchest, emergency/living fund of 1-2 years for job loss insurance, and a big kick in the arse at the right time ... coz very few people will actually have the guts to BUY BIG when STI is down -50% or -60%. :)
Of course, if you don't need to trade or invest for living, then easier to execute strategy! LOL! Additional capital gains, more dividends, higher CAGR just a means to keep score & tell stories! :)
You are not alone with this kind of Investing Mind!
ReplyDelete