Screening For Dividend Stocks Using Yahoo Finance Stock Screener

Previously, I have reviewed on FSMOne stock screener and Stocks Café Stock Screener which is the one that I am using currently. There is no right or wrong on which stock screener that you choose. I have chose Stocks Café stock screener because that is one that I am comfortable with and since I have a paid subscription, I might as well make full use of it. Of course, the best part of Stocks Café stock screener is that it will automatically email you the results daily (depending on the frequency that you set).

Recently, a reader has contacted me twice to review the yahoo finance free stock screener. I am familiar with the old Yahoo Finance stock screener but not aware that they have since redesign the page to include a new free stock screener that at a glance looks sleek and clean.

I have used the following criteria to screen for dividend stocks. You can read more about my criteria selection in my post on Screening For Dividend Stocks Using The FSMOne Stock Screener.

Not sure if it is due to my web browser (Edge), but for each criteria that I tried to set, the browser keeps freezing. You have to wait for a while and the page will “unfreeze”. This is most likely due to the heavy usage of scripts to render the page on the fly. The estimated results counter on the right gets updated real time when you change any criteria so you know how many companies fulfil the criteria that you set.

You may have noticed that the currency selected is in USD. I could not find a way to change it to SGD even though I have selected Singapore as the region.

Upon clicking on Find Stocks, the results are displayed below on the same page. Yahoo offers two views for the results, list and Heatmap view. In list view, I was surprised that there is no indication of dividend yield even though it is one of the criteria that I have set above. The only column that allows sorting is by Market Capitalization. Do you buy stocks only based on Market Capitalization?

I like the feature whereby the results offer a 52-week range that lets you know roughly where the current price is nearer to.

In Heatmap view, this is basically based on Market Capitalization. Well, I am not so familiar on how to interpret heat maps. Here is a screenshot that I shall let you decipher yourself.

Given the lack of dividend yield information in the screened results and the inability to sort by dividend yield, I still prefer Stocks Café stock screener.

Singtel 3QFY20 Net Profit Fell 24% – Should You Buy?

Singtel had released its 3QFY20 financial results on 13 February 2020. The financial results are not so rosey, with operating revenue declining 5% to S$4.38 billion due to lower equipment sales, weak business sentiment and spending, continued price erosion in carriage services and heightened market competition.

Net Profit After Tax was down by 24% to S$627 million due mainly to the weakness in the enterprise business, the impact of the final settlement of a gain on the Airtel Africa pre-IPO investment and lower exceptional gains.

3QFY20
(S$ Mil)
3QFY19
(S$ Mil)
% Change
Operating Revenue 4,378.3 4,626.1 (5%)
Net Profit After Tax 627.2 822.8 (24%)

As shared previously, 48% of Singtel’s net profit comes from its regional associates.

I am glad that Profit Before Tax from its Regional Associates increased 15% to S$393 million. This was driven by strong data growth across all markets. Airtel’s losses narrowed, on the back of strong 4G customer growth, customer upgrades and price increases in India. Its African operations also saw growth momentum in carriage and mobile money services. The stronger operating performances mitigated higher costs and depreciation from its network expansion.

Debt

Singtel’s Net Debt stood at S$12.4 billion. Net debt gearing ratio stood at 31.7%.

Free Cash Flow

Free cash flow for the nine months was up 8% at S$2.74 billion.

Current Dividend Yield

If Singtel maintains the dividend pay out of 17.5 cents, based on the current share price of S$3.17, this translates to a current dividend yield of 5.52% which I deemed attractive given most REITs current yield have fallen to slightly above 5%.

If Singtel is to cut its dividend pay out to 15.8 cents (based on year 2012), the current dividend yield will be 4.98%.

Note: Singtel has a dividend policy to maintain pay out of 17.5 cents until March 2020.

Potential Catalyst

A joint application with consortium partner, Grab, for a digital full bank licence in Singapore has also been submitted in December 2019. The license will allow them to lend monies to companies. Singtel and Grab will know if their application has been approved by mid 2020.

Impact of COVID-19 to Straits Time Index

We are almost one and a half months since the COVID-19 outbreak. Since the outbreak, people scrambled to wipe out surgical masks and hand sanitizers off the shelves. When the DORSCON (Disease Outbreak Response System Condition) level was raised to ORANGE, this causes some form of panic. People flocked to grocery stores to stock up their daily necessities and shopping malls became almost vacant overnight. At this moment, I am not exactly sure how hard the impact of the COVID-19 situation to retail REITs as tenants will still need to pay their rental even though business is bad. Over the weekends, I read about news that land lords are cutting their rental by almost 50% to help tenants tide over the current situation. We will probably see some DPU reduction over the next few quarters.

Below is the STI Index chart since the outbreak of the COVID-19. As you can see, the STI fell below 3,150 in early Feb but started recovering since then.

Let us look at past virus outbreaks to see what is the impact of such outbreaks to the STI.

Below is the STI chart since MERS (Middle East Respiratory Syndrome) outbreak in September 2012. There is slight downtrend from April 2013 to Feb 2014 before the STI starts picking up again. Roughly a year before the situation stabilize?

Let us look at H1N1 (Influenza A virus subtype H1N1) outbreak from April 2009 to August 2010. The swine flu doesn’t seem to have any significant impact on the STI.

I believe everyone would have heard of SARS (Severe Acute Respiratory Syndrome) which occurred in February 2003 to July 2003. The STI shows slight decline from February 2003 to May 2003 before recovering. The decline period is roughly 3 months.

Conclusion

As you can see above, it is very hard to co-relate such virus outbreak situations to the STI. As such, we should avoid timing the market but instead focus on the fundamentals of the business that we are buying into.