Screening For Dividend Stocks In November 2019

How do I find stocks to analyse and decide if it is worth investing? Every month, I will always start by running the stock screener that I have saved on Stocks Café. There are several websites that offer such a tool to screen for stocks using conditions that you can set such as dividend yield, P/E ratio, P/B ratio and Market Capitalization etc. Some website that offers such a tool are Singapore Exchange, FSMOne and StocksCafe.

The stock screener offered by Stocks Café allows me to save the conditions that I can pre-set. You can check out my review here on the Stocks Café Dividend Stocks Screener (Read more: Screening For Dividend Stocks Using Stocks Cafe Stock Screener).

Below are the top 10 dividend yielding stocks as of 14th November 2019.

Name Current Yield % P/E P/B Market Cap
OUE 8.904 19.94 0.33 1.3B
Haw Par 8.765 16.29 0.969 3B
CapitaRetail China Trust 7.316 9.57 0.987 1.8B
Cromwell REIT SGD 7.183 10.96 0.931 1.9B
Cromwell REIT EUR 7.098 11.45 0.966 1.3B
Mapletree NAC Trust 6.757 6.05 0.853 3.9B
Mapletree Industrial Trust 6.076 16.93 1.58 5.4B
Frasers Commercial Trust 5.963 9.77 0.982 1.5B
Yanlord Land 5.714 4.83 0.473 2.4B
Frasers Logistics and Industrial Trust 5.691 11.86 1.271 2.7B

With the ongoing protests in Hong Kong, this has impacted REITs that have Hong Kong assets in its portfolio. Protesters are vandalising malls and this causes shoppers to stay at home, forcing shopping malls and shops to shut their doors.

One such example is Mapletree North Asia Commercial Trust which has Festival Walk as one of its assets.

Mapletree North Asia Commercial Trust is a real estate investment trust, which invests directly or indirectly in a diversified portfolio of income-producing real estate in Hong Kong SAR, China and Japan. It focuses on commercial assets as well as real estate-related assets. Its objective is to achieve an attractive level of return from rental income and long-term capital growth. The company was founded in February 2013 and is headquartered in Singapore.

When the share price fall, the current dividend yield increases. Further analysis is required to check the fundamentals of Mapletree North Asia Commercial Trust if it is still able to sustain its historical dividend payout.

Opportunity?

SPH REIT Acquires 50.0% Interest in Westfield Marion Shopping Centre, Adelaide, South Australia

When SPH REIT announced its FY19 full year results, I mentioned that the debt gearing currently stood at 27.5% which I felt is low for a retail REIT and there is definitely further room for more acquisitions.

On 7th November 2019, SPH REIT announced the acquisition of 50% in Westfield Marion Shopping Centre, Adelaide, South Australia. The other 50% stake is managed by Scentre Group Limited (“Scentre Group”), the largest Australian Retail REIT.

Westfield Marion Shopping Centre houses 327 tenants and have a high occupancy of 99.3% by Gross Lettable Area (“GLA”). The Weighted Average Lease Expiry (“WALE”) is 6.7 years by GLA and 4.2 years by income.

A picture speaks a thousand words. Post acquisition, you can see that Westfield Marion will make up 15% of SPH REIT’s portfolio valued at S$4.2 billion. The acquisition will be funded via the combination of proceeds from the S$300.0m of perpetual securities issued on 30 August 2019, debt and/or equity fund raising.

Rationale for Acquisition

I shall not touch into the details for the rationale for acquisition as you can find the details from the presentation slides. The important to me is the post acquisition DPU on whether it is accretive or not.

  • Deepens strategic presence in Australia with entry into attractive and stable Adelaide market.
  • Dominant, destination lifestyle mall in South Australia.
  • Complementary acquisition, adding to resilience, diversity and quality of SPH REIT’s portfolio.
  • DPU and NAV per unit accretive transaction.

Pro forma FY2019 DPU

Below is the illustrated Pro forma based on FY2019 DPU. We are expected to get 0.09 cents more post acquisition. Oh well, not much difference in terms of dividends to be collected.

The Best Fixed Deposits of November 2019

The next holiday most of us are looking forward to is probably the Christmas Season. In the month of November, banks have launched their Fixed Deposit Christmas Promotion where we can look forward to some attractive interest rates.

For those who has a lump sum of cash and can afford to lock down the money for 12 months or more, I certainly do recommend placing the money into fixed deposits as compared to the Singapore Savings Bonds. The reason is that for a short term period of 12 months, the interest rate for Singapore Savings Bonds has fell tremendously to 1.56% (Read more: December 2019 Singapore Savings Bonds is 1.71%)

Maybank is a clear winner here with interest rate of 1.88% for a 12 months placement. CIMB Bank is in the second place with their Fast Fixed Deposit Christmas Promotion interest rate of 1.80% p.a.

CIMB Fast Fixed Deposit Christmas Promotion

Interest rate: 1.80%, Minimum Placement: S$10,000, Promotion Valid Until: 30th November 2019

The total interest that you will receive if you place S$20,000 for 12 months is S$360.

Hong Leong Finance Fixed Deposit

Interest Rate: 1.73%, Minimum Placement: S$20,000, Promotion Valid Until: Not stated

Hong Leong Finance seems to have increased their interest rate for S$50,000 to less than S$100,000 deposit for a 12 month period from 1.75% to 1.80%.

The total interest that you will receive if you place S$20,000 for 12 months is S$346.

Standard Chartered Bank (Singapore) Time Deposit

Interest Rate: 1.60%, Minimum Placement: S$25,000, Promotion Valid Until: 30th Npvember 2019

The total interest that you will receive if you place S$25,000 for 9 months is S$300.

MayBank Singapore Dollar Time Deposit

Interest Rate: 1.88%, Minimum Placement: S$20,000, Promotion Valid Until: Not stated

The total interest that you will receive if you place S$20,000 for 12 months is S$376.00. However, there are some catch should you choose to place your fixed deposit with MayBank

  • You need to have a MayBank Current or Savings account.
  • For every S$1,000 deposited into the CASA Account, S$10,000 can be placed into the Singapore Dollar Time Deposit, subject to a minimum of S$20,000 in Time Deposit and the corresponding minimum deposit of S$2,000 in the CASA Account.