Dividend List, First on Substack

Let tradition live on!

The start of the year brings fresh aspiration, perspectives and ideas. In this post, we shall continue the tradition of discussing dividend stocks. This is a decade long tradition from the original infosite and this year (as with last year) we will use Poems' screener. It is quite basic but allows us to screen using ROE, ROA, Dividend along with the usual market cap and valuation cut-offs. The following criteria were used:

• Market cap > SGD 500m

• ROE > 10%

• ROA > 4%

• Dividend Yield > 3% 

• PE < 25x

As we know, the Singapore Government 6 month Treasury Bills currently provide 3.7% annual interest. So to be buying for dividends, we would actually require a much higher yield (perhaps 5% or more), otherwise we should just buy T-bills right? However, with high yielding stocks, if they are not generating high enough returns (which is why topline growth and ROE is important), they are basically paying out their equity base. One of the stocks we discussed actually exhibited this: