Thursday, March 10, 2011

Chip Eng Seng and other good dividend stocks.

Since my last blog 2 weeks ago, Chip Eng Seng is trading at 4.5 cents higher at around 47 cents. That's already a 10% increase in value if you have bought then. If you buy now at 47 cents, the dividend yield is only 8.5%. If you have bought at 43 cents, the yield is actually 9.3% in addition of the value increase of 8.1%. That's a total increase of  17.4%. This is the percentage return of invested capital only if you have bought their shares at $0.43 and intend to hold till their exercise dividend date.

Popular Holdings will be reporting their 3rd Quarter results ending 31 Jan 2011 after market close on 11 March 2011. The current trading price is at $0.155 to $0.16. The 0.4 cents interim dividend that was issued on 25 Feb 2011, is considered 2.5% of the price of $0.16. There should be a final dividend to be given in August 2011. Therefore, the dividend yield is actually higher than 2.5% for the year 2011.

Cerebos Pacific will be giving out dividend of 32 cents per share, in May 2011. This gives us a good dividend yield of 6.15% at the closing price of $5.20 on 10 March 2011. CEO's target of $2 billion revenue is within reach in the next few years. If you have the patience, this company can bring you higher than expected returns.

CapitaMall Trust gives out dividends every quarter. At the current price of $1.83 and total dividends of 9.24 cents for the last 4 quarters, it brings us a dividend yield of 5.05%.

Frasers Centrepoint Trust is trading at $1.51. It's total dividend for the past 4 quarters is 7.51 cents. This brings us the dividend yield of 4.97%.

Rental market is in the bull run now. Offices, shops, residential and everywhere else, are increasing their rents. My tuition centre is experiencing the same thing. The landlord decided to increase my current rent by 17%. If you own shares of CapitaMall Trust and Frasers Centrepoint Trust at the current price, what will be your dividend yield in 2011 and 2012? Definitely more than what is stated here.

Have a good day.


Disclaimer: All investments carries a certain degree of risk. Readers are advised to exercise their own discretion when investing.

Disclosure: Blogger owns Popular Holdings and Cerebos Pacific.

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